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General Economics
Syllabus
CPT General Economics

Section C: General Economics (50 Marks)
(I) Micro Economics

1. Introduction to Micro Economics
(a) Definition, scope, and nature of Economics
(b) Methods of economic study
(c) The Central problems of an economy and Production possibilities curve.

2. Theory of Demand and Supply
(a) Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, income and cross elasticity
(b) Theory of consumer ’s behavior – Marshall Ian approach and Indifference curve approach
(c) Meaning and determinants of supply, Law of supply and Elasticity of supply.

3. Theory of Production and Cost
(a) Meaning and Factors of production
(b) Laws of Production – The Law of variable proportions and Laws of returns to scale
(c) Concepts of Costs ─ Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.

4. Price Determination in Different Markets
(a) Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly
(b) Price determination in these markets.

(II) Indian Economic Development

5. Indian Economy – A Profile
(a) Nature of the Indian Economy
(b) Role of different sectors – Agriculture, Industry, and Services in the development of the Indian economy, their problems and growth
(c) National Income of India – Concepts of national income, Different methods of measuring national income, Growth of national 
(d) Basic understanding of tax system of India – Direct and Indirect Taxation

6. Select Aspects of Indian Economy
(a) Population – Its size, rate of growth and its implication for growth
(b) Poverty – Absolute and relative poverty and main programs for poverty alleviation
(c) Unemployment – Types, causes, and incidence of unemployment
(d) Infrastructure ─ Energy, Transportation, Communication, Health and Education
(e) Inflation
(f) Budget and Fiscal deficits
(g) Balance of payments

7. Economic Reforms in India
(a) Features of economic reforms since 1991
(b) Liberalization, Privatization, and Disinvestment
(c) Globalization.

8. Money and Banking
(a) Money – Meaning and functions
(b) Commercial Banks – Role and functions
(c) Reserve Bank of India – Role, and functions, Monetary policy.


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