Economics (200 Marks)
Paper-I (100 Marks)
Table of Contents
I. Microeconomics
Consumer behaviour, Determination of market demand and supply i.e. concept of elasticity of Demand & Supply, Static, Comparative Static Analysis, Distinction between partial and general equilibrium analysis (basic level) theory of the Firm, Producer’s equilibrium, Pricing of the factors of production
II. Macroeconomics
Basic Economic Concepts, National Income Accounting, Consumption Function, Multiplier, Accelerator, Component of Aggregate Demand, Labour Demand and Supply, Unemployment, Determination of equilibrium level of income and output (at least with reference to two or three school of thought), Inflation.
III. Money and Banking
Functions of Money, Quantity Theory of Money, The Fisher and Cambridge Formulations, Systems of note issue, Credit Creation, Functions of Central Banks, Instruments of Credit Control, Distinction between Goals, Operational & Intermediate Target of Central Banks Policy, Concept of Reserves, Liquidity Premium, Term Structure of Interest Rate, Fisher Equation etc; Transmission Mechanisms of Monetary Policy, Theory of Liquidity Preference. TVM, Capital Structure, Capital Restructuring, IS-LM Analysis and The role of Central Bank, Money Demand and Supply.
IV. Public Financing
Government expenditure, Sources of Government Revenue, Privatization, Taxes and non-taxes, Incidence of different taxes, Public Debt, Objectives, methods of repayment, Deficit financing, General Equilibrium Analysis, Welfare Economics, Fiscal Policy.
V. International Trade
Theories of comparative advantage and Factor Endowments, Trade & Growth, Colonialism, Imperialism and International Trade, Trade Restrictions, Economic Integration, Trade Policy, Balance of Payments, Foreign Exchange, International Monetary system, Custom Unions.
VI. Economic Development
Concepts of development, Human development, Historical growth process and Development, Theories of development, structural issues of development, Income distribution and poverty, sectoral (agricultural, Industry, trade and fiancé) issues and development, environment and development.