Micro Economic Theory
(i) Meaning of micro and macro economics:
(ii) Demand: meaning. Classification of factors on which demand depends. Law of demand; derivation of demand curve; movement and shift of the demand curve; determinants of demand; exceptions to the law of demand; indifference curve analysis: meaning, indifference curve and map; marginal rate of substitution; properties of indifference curve; budget-line (meaning only). Comparison of utility and IC analysis.
(iii) Elasticity of Demand: meaning, types of elasticity of demand; measurement of elasticity of demand; factors affecting elasticity of demand; importance of the concept of elasticity of demand.
(iv) Supply: meaning; difference between stock and supply; time period and supply; law of supply; movement and shift of the supply curve; determinants of supply, elasticity of supply.
(v) Concept of product and production function: returns to a factor, total, average and marginal physical products; law of variable proportions and its three stages; returns to scale.
(vi) Equilibrium price, and effect of changes in demand and supply on the Equilibrium Price.
(vii) Revenue and cost: meaning of total, average and marginal revenue. Relationship between AR and MR under perfect, imperfect competition and monopoly. Fixed and variable cost. Total, average and marginal cost and their relationship. Opportunity cost: definition, application: explicit and implicit cost: short run and long run cost curve;
internal and external economies equilibrium of the firm.
(viii) Main market forms: perfect competition, imperfect competition; oligopoly, monopoly - characteristics of the various market forms; equilibrium of firm under short run and long run under various market forms.
(ix) The theory of Distribution: Marginal Productivity Theory of Distribution: Wages: determination of wages under marginal productivity theory and modern theory: Collective bargaining. Rent: Ricardian theory of rent, economic rent, transfer earning; Interest: gross and net; Profit: gross and net.
National Income
(i) Circular flow of Income.
(ii) Nature of goods and services produced.
(iii) Concepts and definition of NY, GNP, GDP, NNP, private income, personal income, personal disposable income, and per capita income; relationship between the income concepts.
(iv) Methods of measuring National Income: product or value-added method; income method and expenditure method with simple numericals based on only “operating surplus and compensation of employees.”
International Trade
(i) Need for international trade; basis of international trade in terms of the theory of comparative costs (Ricardo).
(ii) Balance of Payments: Balance of Trade: meaning; causes of disequilibrium in B.O.P.; measures to correct the disequilibrium in the B.O.P.
Public Finance
(i) Public Revenue: meaning; Taxes: types, direct, indirect taxes, merits and demerits; progressive, proportional, regressive, digressive (meaning only). Sources of central and state revenue (names only); VAT.
(ii) Public Expenditure: meaning, reasons for growth of public expenditure in recent times.
(iii) Public Debt: reasons for external and internal borrowing by the government.; methods of debt redemption; effects of borrowing on the Indian economy.
(iv) Fiscal Policy: Meaning and instruments of fiscal policy. Fiscal measures to control inflation.
(v) Deficit Financing: the “why”, “how” and effects of deficit financing; Indian compulsion for deficit financing. Types of deficit. An understanding of: Revenue deficit, Fiscal deficit and Budget deficit.
(vi) Budget: need, types, budgetary procedure: preparation, enactment, execution and parliamentary control over finance), in brief.
|
