Exploring the Subject Matter of Economics, Markets and Welfare. The Ten Principles of Economics; Working of the economy as a whole; Thinking like an Economist: The Market Forces; Markets and Competition; The Demand and Supply; Market Equilibrium; Elasticity of Demand and Supply; Consumer and Producer Surplus. Theory of Consumer Choice; The budget constraint; Optimisation-Equilibrium. The Firm and Market Structures; Theory of Production and Cost: Production Function; Isoquants and Laws of Production; Firms in Competitive Markets; Profit maximisation and the competitive firm’s supply curve. The firm’s supply decision; Firm’s short-run decision to shut down; Firm’s long-run decision to exit or enter a market. The Input Markets. The marginal product of labour; demand for labour; The supply of labour- the trade-off between work and leisure; Equilibrium in the labour market.