Section C: General Economics (50 marks)

Objective: To ensure basic understanding of economic systems, economic behaviour of individuals and organizations.


      1. Introduction to Micro Economics: Definition, scope and nature of economics, Methods of economics study, Central problems of an economy and production possibilities curve.
      2. Theory of Demand and supply: Meaning and determinates of demands , law of demand and elasticity of demand-price, income and cross elasticity, theory of consumer’s behaviour- Marshallian approach and Indifference curve approach, Meaning and determinants of supply, Law of supply and elasticity of supply.
      3. Theory of Production and Cost: Meaning and factors of production, Laws of production- The Law of variable proportions and laws of return to scale, Concepts of costs- Short –run and long- run costs, Average and marginal costs, total, fixed and variable costs.
      4. Price Determination in Different Markets: Various forms of markets- Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly, price determination in these markets.
    2. Indian Economy Development
      1. Indian Economy- A Profile: Nature of the Indian Economy, Role of different sectors-Agriculture, Industry and services in the development of the Indian economy, their problems and growth, national income of India- Concepts of national income, different methods of measuring national income, growth of national and per capital income in various plans, Basic understanding of tax system of India- Direct and Indirect Taxation.
      2. Select Aspects of the Indian Economy: Population- Its size, rate of growth and its implication for growth, Poverty- Absolute and relative poverty and main for poverty alleviation, Unemployment- Types, causes and incidence of unemployment, Infrastructure- Energy, Transport, communication, Health and Education, Inflation, Budgets and fiscal deficits, Balance of payments, External debts.
      3. Economic Reforms in India: Features of economic reforms since 1991, Liberalisation, Privatisation and Disinvestment, Globalisation.
      4. Money and Banking: Money-Meaning and Functions, Commercial Banks of India- Role and Functions, Reserve Bank of India- Role and Functions, Monetary policy.