New syllabus of B.Com Part-1 effective from 2006

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1 New syllabus of B.Com Part-1 effective from 2006 ECONOMIC ANALYSIS AND POLICY MICRO ECONOMICS 2 questions, 40 Marks CHAPTER 1 1NTRODUCTION 1 Basic concepts 2 Definition 3 Micro and macro approach to economic analysis CHAPTER 2 CONSUMER S BEHAVIOR ANALYSIS 1 Demand, function and functional equations of demand 2 Elasticity of demand, significance, methods of measurement, its kinds 3 Consumer s equilibrium- cardinal and ordinal approaches CHAPTER 3 THEORY OF PRODUCTION 1 Factors of production and their relative importance 2 Firms and industry 3 Laws of returns and returns to scale 4 Production function, Iso-equants and Iso-cost curves 5 Least cost factor combination 6 Production possibility curve CHAPTER 4 MARKET Definition and brief classification CHAPTER 5 FIRM S COST AND REVENUE ANALYSIS PRICE AND OUTPUT DETERMINATION CHAPTER 6 OF A FIRM AND INDUSTRY UNDER 1 Perfect competition 2 Monopoly 3 oligopooly 4 Monopolistic competition

2 MACRO ECONOMICS 2 questions, 40 Marks CHAPTER 7 NATIONAL INCOME 1 Definition, concepts and its significance 2 Methods of computing national income 3 Determinants of national income Consumption, consumption function, its determinants, Keynesian 4 psychological law of consumption 5 Saving, propensity to save and factors determining saving 6 Investment, meaning, kinds, its determinants MEC and rate of interest 7 Cross section analysis and time series analysis of consumption CHAPTER 8 DETERMINATION OF INCOME AND EMPLOYMENT 1 Meaning of full employment 2 Kinds of unemployment 3 Determination of equilibrium level of national income 4 Keynesian theory of income and emplo6yment 5 Inflationary and deflationary gap 6 Multiplier doctrine 7 Acceleration principle, interaction of multiplier and acceleration CHAPTER 9 CHAPTER 10 TRADE CYCLES MONETARY POLICY AND FISCAL POLICY ECONOMIC SYSTEMS 1 question, 20 Marks 1 Definition 2 Central problems of an economy Different economic systems, Capitalism, Socialism, Mixed economy and 3 Islamic economic system, their merits and demerits and criticism 4 Comparative study of different economic systems

3 BASIC CONCEPTS Definition of economics Micro economics Macro economics Normative economics Positive economics Scope of economics Economic wants Scarcity and choice CONTENTS Page No. CONSUMER S BEHAVIOR ANALYSIS Law of diminishing marginal utility Limitation of the law Exception of the law Practical importance of the law Law of Equi-Marginal utility Limitations of the law Consumers equilibrium with one or two models Consumer s Surplus Indifference curves analysis SCALE OF PRODUCTION Advantages of large scale production Disadvantages of large scale production Advantages of small scale production Disadvantages of small scale production Internal Economies External Economies Production Possibility Curve Production function Law of diminishing returns Law of Increasing returns Law of constant returns Returns to Scale

4 CONTENTS LAW OF DEMAND Law of demand Limitations and exception of law of demand Causes of changes in demand other than change in price Shifts in demand curve Perfectly elastic demand Demand elasticity equal to unity Demand elasticity less than unity Demand elasticity more than unity Income elasticity Cross elasticity Point elasticity Arc elasticity Practical importance of elasticity of demand LAW OF SUPPLY Law of supply Causes of changes in supply other than change in price Shifts in supply Perfectly inelastic supply Supply elasticity equal to unity Supply elasticity less than unity Supply elasticity more than unity PRICE DETERMINATION Price determination Change in demand and supply Price determination in daily market Price determination in short run market Price determination in long run market COST AND REVENUE Average, marginal and total product Average, marginal and total cost Average, marginal and total revenue in perfect competition Average, marginal and total revenue in imperfect competition Marginal cost and marginal revenue relation Opportunity cost Explicit cost and Implicit cost Iso-cost curve

5 CONTENTS PRICE & OUTPUT DETERMINATION Perfect competition in short period Perfect competition in long period Monopolistic competition in short period Monopolistic competition in long period Monopoly in short period Monopoly in long period Monopoly price discrimination Oligopoly Oligopoly price leadership Duopoly NATIONAL INCOME Circular flow of national income Difference between GNP,GDP,NNP,PI, PDI National income at constant and current prices Product method of measurement of national income Income method of measurement of national income Expenditure method of measurement of national income Importance of measuring national income Difficulties in measuring national income KEYNES THEORY OF INCOME AND EMPLOYMENT Consumption function Savings function Investment function Investment Multiplier Principle of Acceleration Interaction of multiplier and acceleration Deflationary gap Income and Employment Equilibrium

6 CONTENTS MONEY, BANKING, FINANCE Nature and functions of money Quantity theory of money Inflation, deflation, causes, effects and measurement of inflation Philips Curve Functions of commercial banks Credit creation Functions of central bank Monetary policy Fiscal policy Money market Capital market Sources of capital formation INTERNATIONAL TRADE Difference between domestic and international trade Theory of comparative advantage Mechanism of foreign exchange rate Devaluation and its effect on economy International trade in developing countries Commercial policy Protection policy Balance of trade Balance of payments Terms of trade W.T.O. ECONOMIC SYSTEMS Capitalism Socialism Mixed Economy Islamic Economy Islamic Mode of Financing

Institute of Actuaries of India

Institute of Actuaries of India Subject CT7 Business Economics For 2018 Examinations Aim The aim of the Business Economics subject is to introduce students to the core economic principles and how these