Commerce

Part A – Microeconomics

Chapter 1 

Introduction to Microeconomics

• Simple Economy

• Central Problems of an Economy

• Organisation of Economic Activities

• Centrally Planned Economy

• Market Economy

• Positive And Normative Economics

• Microeconomics And Macroeconomics

Chapter 2

Theory of Consumer Behaviour

• Utility

• The Consumer’s Budget

• Budget Set

• Budget Line

• Changes in the Budget Set

• Optimal Choice of the Consumer

• Demand

• Demand Curve and the Law of Demand

• Deriving a Demand Curve from Indifference Curves and Budget Constraints

• Normal and Inferior Goods

• Substitutes and Complements

• Shifts in the Demand Curve

• Movements along the Demand Curve and Shifts in the Demand Curve

• Market Demand

• Elasticity of Demand

• Factors Determining Price Elasticity of Demand for a Good

• Elasticity and Expenditure

Chapter 3

Production and Costs

• Production Function

• The Short Run and the Long Run

• Total Product, Average Product and Marginal Product

• The Law of Diminishing Marginal Product and the Law of Variable Proportions

• Shapes of Total Product, Marginal Product and Average Product Curves

• Returns to Scale

• Costs

• Short Run Costs

• Long Run Costs

Chapter 4

The Theory of Firm Under Perfect Competition

• Perfect competition: Defining Features

• Revenue

• Profit Maximisation

• The Profit Maximisation Problem: Graphical Representation

• Supply Curve of a Firm

• Short Run Supply Curve of a Firm

• Long Run Supply Curve of a Firm

• The Shutdown Point

• The Normal Profit and Break-even Point

• Determinants of a Firm’s Supply Curve

• Market Supply Curve

• Price Elasticity of Supply

Chapter 5

Market Equilibrium

• Equilibrium, Excess Demand, Excess Supply

• Market Equilibrium: Fixed Number of Firms

• Market Equilibrium: Free Entry and Exit

Chapter 6

Non-Competitive Markets

• Simple Monopoly in the Commodity Market

• Market Demand Curve is the Average Revenue Curve

• Marginal Revenue and Price Elasticity of Demand

• Short Run Equilibrium of the Monopoly Firm

• Monopolistic Competition

• How do Firms behave in Oligopoly?

Part B – Macroeconomics

Chapter 1 

Introduction to Macroeconomics

• Emergence of Macroeconomics

Chapter 2

National Income Accounting

• Some Basic Concepts of Macroeconomics

• Circular Flow of Income and Methods of Calculating National Income

• The Product or Value Added Method

• Expenditure Method

• Income Method

• Factor Cost, Basic Prices and Market Prices

• Some Macroeconomic Identities

• Nominal and Real GDP

• GDP and Welfare

Chapter 3

Money and Banking

• Functions of Money

• Demand for Money

• Supply of Money

• Money Creation by Banking System

• Balance Sheet of a Fictional Bank

• Limits to Credit Creation and Money Multiplier

• Policy Tools to Control Money Supply

Chapter 4

Determination of Income and Employment

• Aggregate Demand and its Components

• Investment

• Determination of Income in Two-sector Model

• Determination of Equilibrium Income in the Short Run

• Macroeconomic equilibrium with price level fixed

• The Multiplier Mechanism

Chapter 5

Government Budget and Economy

• Government Budget – Meaning and its Components

• Objectives of Government Budget

• Classification of Receipts

• Classification of Expenditure

• Balanced, Surplus and Deficit Budget

• Measures of Government Deficit

Chapter 6

Open Economy Macroeconomics

• The Balance of Payments

• Current Account

• Capital Account

• Balance of Payments Surplus and Deficit

• The Foreign Exchange Market

• Determination of the Exchange Rate

• Merits and Demerits of Flexible and Fixed Exchange Rate Systems

• Managed Floating