Level of Knowledge: Basic Knowledge
Objective: To familiarize the basic concepts and theories of economics, elementary statistics and
mathematics.
PART
... [Show More] A: ECONOMICS (70 MARKS)
1. Nature and Scope of Economics
– Economics : Definition, Nature and Scope; Micro and Macro Economics; Positive and Normative
Economics; Central Problems of an Economy; Production Possibility Curve and Opportunity Cost;
Working of Economic Systems (Capitalistic Economy, Socialistic Economy, Mixed Economy); Economic
Cycles; Inflation and Recession
2. Theory of Demand and Supply
– Utility Analysis - Total Utility and Marginal Utility; Law of Diminishing Marginal Utility; Law of Equi-
Marginal Utility; Consumers’ Equilibrium; Law of Demand & Elasticity of Demand; Law of Supply &
Elasticity of Supply; Demand and Supply Equilibrium; Theory of Consumer’s Behaviour – Marshallian
Approach and Indifference Curve Approach
3. Theory of Production, Costs and Revenue
– Meaning of Factors of Production; Returns to Factor and Returns to Scale; Cost Concepts and Cost
Curves; Revenue Concepts and Revenue Curves; Producers’ Equilibrium
4. Forms of Markets and its Equilibrium
– Forms of Markets - Meaning and Characteristics
– Price and Output Determination - Equilibrium for Firm and Industry under
– Perfect Competition
– Monopoly
– Monopolistic Competition
5. Money and Banking
– Concept of Money - Its Functions; Quantity Theory of Money; Credit Creation
– Central Bank (Reserve Bank of India) - Role and Functions
– Commercial Banks - Role and Functions
– Monetary Policy in India
6. Basic Characteristics of Indian Economy
– Development Initiatives through Five Year Plans
v
– Agriculture
– Causes of Low Productivity
– Farm Size Productivity Debate
– Land Reforms: Meaning, Importance and Evaluation
– Green Revolution and Its Effects
– Globalisation and Indian Agriculture
– Industry
– Development Policies and Experience
– Industrial Policy Resolutions
– New Industrial Policy 1991
7. Selected Areas of Indian Economy
– Population - Its Size, Rate of Growth and Its Implication for Growth
– Poverty - Absolute and Relative Poverty and Main Programs for Poverty Alleviation
– Unemployment - Types, Causes and Incidence of Unemployment
– Infrastructure - Energy, Transportation, Communication, Health and Education
PART B: ELEMENTARY STATISTICS (30 MARKS)
8. Statistics: An Overview
– Definition and Functions of Statistic; Statistical Techniques Commonly used in Business Activities; Law
of Statistics; Limitations of Statistics
9. Collection and Presentation of Statistical Data
– Primary and Secondary Data; Classification and Tabulation of Data; Frequency Distribution of Data;
Diagrams and Graphs
10. Measures of Central Tendency
– Mean
– Median
– Mode
– Standard Deviation
11. Mathematics of Finance
– Simple Interest
– Compound Interest
– Present Value & Future Value of an Annuity
vi
12. Probability
– Sample Spaces, Events and Probability
– Set Theory: Union, Intersection, and Complement of Events
– Conditional Probability, Intersection, and Expected Value
– Random Variable, Probability Distribution, and Expectation
13. Index Numbers and Time Series Analysis
– Familiarization with the Concepts Relating to Index Numbers and Time Series (Simple Numerical [Show Less]