SESSION II

(Two Sections Two hours 100 Marks)

Section C: General Economics (50 Marks )
Level of Knowledge :
Basic knowledge.
Objective . . .
1. To ensure basic understanding of economic systems, economic behaviour of i
ndividuals and organizations.
Contents . . .
1. Micro Economics
1. Introduction to Micro Economics
1. Definition, scope and nature of Economics
2. Methods of economic study
3. Central problems of an economy and Production possibilities cu
rve.
2. Theory of Demand and Supply
1. Meaning and determinants of demand, Law of demand and Elastici
ty of demand, Price, income and cross elasticity
2. Theory of consumer s behaviour Marshallian approach and Indiffe
rence curve approach
3. Meaning and determinants of supply, Law of supply and Elastici
ty of supply.
3. Theory of Production and Cost
1. Meaning and Factors of production
2. Laws of Production The Law of variable proportions and Laws of
returns to scale
3. Concepts of Costs  Short-run and long-run costs, Average and ma
rginal costs, Total, fixed and variable costs.
4. Price Determination in Different Markets
1. Various forms of markets Perfect Competition, Monopoly, Monopo
listic Competition and Oligopoly
2. Price determination in these markets.
2. Indian Economic Development
1. Indian Economy A Profile
1. Nature of the Indian Economy
2. Role of different sectors Agriculture, Industry and Services i
n the development of the Indian economy, their problems and growth.
3. National Income of India Concepts of national income, Differen
t methods of measuring national income, Growth of national income and per capita
income in various plans.
4. Basic understanding of tax system of India Direct and Indirect
Taxation
2. Select Aspects of Indian Economy
1. Population Its size, rate of growth and its implication for gr
owth
2. Poverty Absolute and relative poverty and main programs for po
verty alleviation
3. Unemployment Types, causes and incidence of unemployment
4. Infrastructure  Energy, Transportation, Communication, Health a
nd Education
5. Inflation
6. Budget and Fiscal deficits
7. Balance of payments
8. External debts.
3. Economic Reforms in India
1. Features of economic reforms since 1991
2. Liberalisation, Privatisation and Disinvestment
3. Globalisation.
4. Money
and Banking
1. Money Meaning and functions
2. Commercial Banks Role and functions
3. Reserve Bank of India Role and functions, Monetary policy.