Topics
Introduction to Micro and Macro Economics
Micro Economics
Macro Economics
Utility Analysis
- Utility
- Types of Utility
- Concepts of Utility
- Relationship Between Total Utility and Marginal Utility
- Law of Diminishing Marginal Utility
- Assumptions of Diminishing Marginal Utility
- Exceptions to the Law of Diminishing Marginal Utility
- Criticisms of the Diminishing Marginal Utility
- Significance of the Diminishing Marginal Utility
- Relationship Between Marginal Utility and Price
- Diminishing Marginal Utility
Demand Analysis
Elasticity of Demand
Supply Analysis
Forms of Market
Index Numbers
National Income
- Concept of National Income
- Features of National Income
- Circular Flow of National Income
- Different Concepts of National Income
- Methods of Measurement of National Income
- Output Method/Product Method
- Income Method
- Expenditure Method
- Difficulties in the Measurement of National Income
- Importance of National Income Analysis
Public Finance in India
Money Market and Capital Market in India
- Financial Market
- Money Market in India
- Structure of Money Market in India
- Organized Sector
- Reserve Bank of India (RBI)
- Commercial Banks
- Co-operative Banks
- Development Financial Institutions (DFIs)
- Discount and Finance House of India (DFHI)
- Unorganized Sector
- Role of Money Market in India
- Problems of the Indian Money Market
- Reforms Introduced in the Money Market
- Capital Market
- Structure of Capital Market in India
- Role of Capital Market in India
- Problems of the Capital Market
- Reforms Introduced in the Capital Market
Foreign Trade of India
- Internal Trade
- Foreign Trade of India
- Types of Foreign Trade
- Role of Foreign Trade
- Composition of India’s Foreign Trade
- Direction of India’s Foreign Trade
- Trends in India’s Foreign Trade since 2001
- Concept of Balance of Payments (BOP)
Introduction to Micro Economics
- Features of Micro Economics
- Analysis of Market Structure
- Importance of Micro Economics
- Micro Economics - Slicing Method
- Use of Marginalism Principle in Micro Economics
- Micro Economics - Price Theory
- Micro Economic - Price Determination
- Micro Economics - Working of a Free Market Economy
- Micro Economics - International Trade and Public Finance
- Basis of Welfare Economics
- Micro Economics - Useful to Government
- Assumption of Micro Economic Analysis
- Meaning of Micro and Macro Economics
Consumers Behavior
Analysis of Demand and Elasticity of Demand
Analysis of Supply
Types of Market and Price Determination Under Perfect Competition
- Market
- Forms of Market
- Market Forms - Duopoly
- Equilibrium Price
Factors of Production
- Factors of Production - Land
- Factors of Production: Labour
- Factors of Production: Capital
- Factors of Production - Feature of Capital
- Factors of Production - Organisation
Introduction to Macro Economics
- Features of Macro Economic
- Importance of Macro Economic
- Difference Between Mirco Economic and Macro Economic
- Allocation of Resource and Economic Variable
National Income
Determinants of Aggregates
- Total Demand for Good and Services
- Concept of Aggregate Demand and Aggregate Supply
- Consumption Demand
- Investment Demand
- Government Demand
- Foreign Demand
- Difference Betweeen Export and Import
- Effect of Population of Consumption Expediture
- Types of Investment Expenditure
- Micro Eco-Equilibrium
Money
- Meaning of Money
- Type of Money
- Primary Function
- Secondary Functions
- Standard of Deferred Payment
- Standard of Transfer Payment
- Money - Store of Value
- Concept of Barter Exchange
- Difficulties Involved in the Barter Exchange
- Monetary Payments
- Concept of Good Money
Commercial Bank
Central Bank
- Definition - Central Bank
- Central Bank Function - Banker's Bank
- Central Bank Function - Controller of Credit
- Monetary Function of Central Bank
- Non Monetary Function of Central Bank
- Method of Credit Control - Quantitative
- Repo Rate and Reverse Repo Rate
- Central Bank Function - Goverment Bank
Public Economics
- Introduction of Public Economics
- Features of Public Economics
- Meaning of Government Budget
- Objectives of Government Budget
- Features of Government Budget
- Public Economics - Budget (1 Year)(1 April to 31 March)
- Types of Budget
- Taxable Income
- Budgetary Accounting in India
- Budgetary Accounting - Consolidated , Contingency and Public Fund
- Components of Budget
- Factor Influencing Government Budget
- Price Elasticity of Demand (Ep)
- Income Elasticity of Demand (Ey)
- Cross Elasticity of Demand (Ec)
Notes
Types of Elasticity of Demand:
1) Income Elasticity:
It refers to the degree of responsiveness of a change in quantity demanded to a change in the income only, other factors including price remain unchanged. It is expressed as :
`"Ey" = "Percentage change in Qty. Demanded"/"Percentage change in Income"`
`"Ey" = "% Δ Q"/"% ΔY"`
`="ΔQ"/"Q"÷"ΔY"/"Y"`
`="ΔQ"/"Q"xx"Y"/"ΔY"`
Where,
Δ = Represents Change
Q = Orignal demand
Y = Orignal income
ΔQ = Change in quantity demanded
ΔY = Change in income of a consumer
You should know :
• Positive income elasticity:
Normal goods for which demand increases with increase in income.
• Negative income elasticity:
Inferior or goods for which demand decreases with increase in income of consumer.
• Zero income elasticity:
Necessary goods for which demand remains constant with increase in income of the consumer.
2) Cross elasticity :
It refers to a change in quantity demanded of one commodity due to a change in the price of other commodity. (Complementary goods or substitutes)
`"Ec" ="Percentage change in Qty. demanded of A"/"Percentage change in Price of B"`
Symbolically,
`"Ec"="%ΔQ"_"A"/"%ΔP"_"B"`
`="ΔQ"_"A"/"Q"_"A"÷"ΔP"_"B"/"P"_"B"`
`="ΔQ"_"A"/"Q"_"A"xx"P"_"B"/"ΔP"_"B"`
Where,
QA = Original quantity demanded of commodity A
QA= Change in quantity demanded of commodity A
PB = Original price of commodity B
ΔPB = Change in price of commodity B
You should know :
• Positive cross elasticity :
Substitute goods. Example, tea and coffee.
• Negative cross elasticity : Complementary goods. Example, tea and sugar.
• Zero cross elasticity : Non-related goods. Example, tea and books.
3) Price elasticity :
According to Prof. Alfred Marshall, price elasticity of demand is a ratio of proportionate change in the quantity demanded of a commodity to a given proportionate change in its price only.
`"Ed" ="Percentage change in Qty. demanded"/"Percentage change in Price"`
`"Ed"="%ΔQ"/"%ΔP"`
`="ΔQ"/"Q"÷"ΔP"/"P"`
`="ΔQ"/"Q"xx"P"/"ΔP"`
Where,
Q = Original quantity demanded
ΔQ = Difference between the new quantity and original quantity demanded
P = Original price
ΔP = Difference between new price and original price
