OFFICIAL SYLLABUS 2022

Subject - Economics

Subject Code - 10

Question Paper - Only One

Time - 03:15 Hours

Marks for Question Paper - 80

Sessional - 20

Total Marks - 100

Units/Chapters Name

Part A: Introductory Macroeconomics

Unit 1: Macroeconomics

Chapter 1. Introduction

Emergence of Macroeconomics, Context of the Present Book of Macroeconomics.

Chapter 2. National Income Accounting

Basic concepts in macroeconomics, Circular flow of income (two sector model); Methods of calculating National Income - Value Added or Product method, Expenditure method, Income method. Factor cost, basic prices and market prices, macreoeconomic identities, Real and Nominal GDP, GDP and Welfare.

Unit 2: Money and Banking

Chapter 3. Money and Banking

Functions of Money, demand for money, supply of money, Money creation by the banking system. Balance Sheet of a Fictional Bank, Limits to Credit Creation and Money Multiplier, policy tools to control money supply.

Unit 3: Income and Employment

Chapter 4. Determination of Income and Employment

Aggregate demand and its components-consumption, investment, determination of Income in two sector model, Determination of equilibrium with price level, fixed effect of an autonomous change in aggregate demand on income and output. The multiplyer mechanism, other concepts.

Unit 4: Government Budget

Chapter 5. Government Budget and the Economy

Government budget - meaning, objectives and its components, Objectives of government budget, Classification of receipts , Classification of expenditure,Balanced, surplus, deficit Budget. Measures of government deficit.

Unit 5: Open Economy

Chapter 6. Open Economy-Macroeconomics

Balance of payments, current account, capital account, balance of payments surplus and deficit. Foreign exchange market, Foreign exchange rate, Determination of exchange rate , merits and demerits of flexible and fixed exchange rate systems, managed floating.

Part B :Introductory Microeconomics

Unit 1: Introductory Microeconomics

Chapter 1. Introduction

A Simple Economy , Central Problems of an Economy , Organisation of Economic Activities ,The Centrally Planned Economy,The Market Economy, Positive and Normative Economics, Microeconomics and Macroeconomics.

Unit 2: Consumer Behaviour

Chapter 2. Theory of Consumer Behaviour

Utility, Cardinal Utility Analysis, Ordinal Utility Analysis, The Consumer’s Budget, Budget Set and Budget Line, Changes in the Budget Set, Optimal Choice of the Consumer, Demand, Demand Curve and the Law of Demand, Deriving a Demand Curve from Indifference Curves and Budget Constraints, Normal and Inferior Goods, Substitutes and Complements, Shifts in the Demand Curve , Movements along the Demand Curve and Shifts in the Demand Curve, Market Demand, Elasticity of Demand, Elasticity along a Linear Demand Curve, Factors Determining Price Elasticity of Demand for a Good, Elasticity and Expenditure.

Unit 3: Concepts of Production and Costs

Chapter 3. Production and Costs

Production Function. The Short Run and the Long Run. Total Product, Average Product and Marginal Product. The Law of Diminishing Marginal Product and the Law of Variable Proportions. Shapes of Total Product, Marginal Product and Average Product Curves. Returns to Scale, Costs, Short Run and Long Run Costs .

Unit 4: Perfect Competition

Chapter 4. The Theory of the Firm Under Perfect Competition

Perfect Competition: Defining Features, Revenue , Profit Maximisation , The Profit Maximisation Problem: Graphical Representation, Supply Curve of a Firm, Short Run Supply Curve of a Firm. Long Run Supply Curve of a Firm, The Shut Down Point , The Normal Profit and Break-even Point , Determinants of a Firm’s Supply Curve, Technological Progress, Input Prices, Market Supply Curve, Price Elasticity of Supply.

Chapter 5. Market Equilibrium

Equilibrium, Excess Demand, Excess Supply, Market Equilibrium: Fixed Number of Firms, Market Equilibrium: Free Entry and Exit, Applications, Price Ceiling Price Floor.

Chapter 6. Non-Competitive Markets

Simple Monopoly in the Commodity Market, Market Demand Curve is the Average Revenue Curve, Total, Average and Marginal Revenues, Marginal Revenue and Price Elasticity of Demand, Short Run Equilibrium of the Monopoly Firm, Other Non-perfectly Competitive Markets , Monopolistic Competition, Oligopoly

Prescribed Books:-

1. Microeconomics - NCERT's Book Published under Copyright

2. Macroeconomics - NCERT's Book Published under Copyright

Note - Some Units/Chapters have been reduced from the syllabus for the 2022 Exam.

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