CA Foundation  >  How to prepare for Economics for CA CPT? Step by Step Guide for CA CPT

How to prepare for Economics for CA CPT? Step by Step Guide for CA CPT - CA Foundation

How to prepare for Economics for CA CPT

Economics is a core subject. The objective of including Economics in CA CPT is to develop a basic understanding of the concepts and the framework of the Indian economy. And secondly, it is allotted a full 50 marks. The paper for Economics is clubbed with that of Quantitative Aptitude (QA) in CPT exams. Many students find it difficult to score in QA, and if you are one of them, it is especially important that you score well in Economics to maintain the balance and score 50% in the aggregate. Economics is basically a Theory subject with Mathematics & Statistics in it. The best way to learn such a subject is to make points. This is a scoring subject for students coming from Commerce background. If the students not belonging to commerce background pay some attention to this subject, then they can also score good marks in this subject. In the CA CPT, this is comparatively, an easier subject and the Macro Economics part of it is more mark-fetching if you have made clear conception in the theory. It is about the study of national economics and of the government policies taken up for affecting the economic performance of a nation.

How to prepare for Economics for CA CPT? Step by Step Guide for CA CPT - CA Foundation

Economics for CA CPT

Includes  78 docs, 66 videos & 60 tests

Here are few guiding tips to help you prepare for Economics for CA CPT exam:

1. Clear your basics:

The key point to consider while preparing the Economics section for CA CPT is strengthening the basics.

Once the basics are clear then the candidate will also be able to comprehend and attempt those questions that are at a slightly higher level. Start with the basic concepts and move step-by-step forward. This will help you gain the knowledge of Economics subject in an easy to understand way.

The difficult topics should always be dealt with later or else they would end up hampering the confidence of the candidates in this section. Always focus on the basic first and then, work on the difficult parts.

2. Prepare a Schedule:

It is very important to make a schedule for good results. The candidate should study enough hours before the exam with a proper time-table. Always remember that inconsistency is a roadblock in the path of success. Dedicate time to all topics so that you do not miss anything during preparation. It is not the number of hours but the substance which matters. Moreover, the concentration power also varies from student to student. Thus, you should not think over these minor issues, rather be focused in your approach and methodology. Follow the prepared time table strictly and you will see good results.

3. Write and learn:

Making notes for every chapter you study will be very helpful during the preparation. Make concise and comprehensive notes which you can refer to at the time of final revision. One advantage of making notes while studying is that you tend to remember much better when you write things. They stay in your mind for a longer period of time. Beware of the current economic trends relevant to your attempt. Practice diagram /graph by yourself on the basis of explanation given to clarify the concept and the logic behind the diagram. Revise with these notes to save time.

4. Practice a lot:

One needs to use the time really efficiently and one way to do that is practicing as much as possible. Regular practice will increase your speed and accuracy. It will help you save a considerable time during the exam, which can further be utilized in other sections.

Practice will contribute in making the student comfortable with various topics in Economics for CA CPT.

Economics Practice Tests

5. Evaluate yourself with CA CPT Mock tests and CA CPT Previous year papers:

After you are confident regarding the concepts of Economics covered under CA CPT Syllabus, start attempting CA CPT mock tests and CA CPT Previous year question papers on a regular basis. With this, you will be able to identify your weak and strong points and further work on that. You will get familiar with the exam pattern and the type of questions you can expect in Economics for CA CPT.

CA CPT Mock Tests and Previous Year papers

How to prepare for Economics for CA CPT? Step by Step Guide for CA CPT - CA Foundation

Syllabus for Economics for CA CPT:

Micro Economics:

Introduction to Microeconomics 

(a) Definition, scope and nature of Economics

(b) Methods of economic study

(c) Central problems of an economy and Production possibilities curve.

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 behaviour–Marshallian approach and Indifference curve approach

(c) Meaning and determinants of supply, Law of supply and Elasticity of supply.

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

Price Determination in Different Markets

(a) Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly

(b) Price determination in these markets

Indian Economic Development:

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 income and per capita income in various plans.

(d) Basic understanding of tax system of India – Direct and Indirect Taxation

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

(h) External debts.

Economic Reforms in India

(a) Features of economic reforms since 1991

(b) Liberalisation, Privatisation and Disinvestment

(c) Globalisation.

Money and Banking

(a) Money – Meaning and functions

(b) Commercial Banks – Role and functions

(c) Reserve Bank of India – Role and functions, Monetary policy

Recommended Books for General Economics for CA CPT:

  • General Economics – S.K. Agarwal or Deepashree
  • Basics of General Economics for CA CPT by G Sekar, B Saravana Prasath
  • General Economics By T Padma K P C Rao

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FAQs on How to prepare for Economics for CA CPT? Step by Step Guide for CA CPT - CA Foundation

1. How can I prepare for Economics for CA CPT?
Ans. To prepare for Economics for CA CPT, you can follow these steps: 1. Understand the syllabus: Familiarize yourself with the topics and concepts that are part of the Economics syllabus for CA CPT. 2. Study material: Use recommended textbooks and study materials provided by coaching institutes or professional bodies. These materials will cover all the necessary topics in detail. 3. Create a study plan: Develop a study schedule that allows you to allocate sufficient time for each topic. Divide your study time effectively, giving more attention to areas you find challenging. 4. Practice numerical problems: Economics for CA CPT often involves numerical calculations. Practice solving numerical problems regularly to improve your understanding and speed. 5. Take mock tests: Mock tests will help you assess your preparation level and identify areas that need improvement. Solve previous years' question papers and attempt mock tests to get familiar with the exam pattern and time management. 6. Seek guidance: If you are facing difficulty in understanding certain concepts, seek guidance from your teachers, peers, or join online forums where you can discuss your queries and get clarification. 7. Revision: Regularly revise the topics you have studied to reinforce your learning. Make concise notes or flashcards to revise important formulas, definitions, and concepts. 8. Stay updated: Stay updated with current economic affairs by reading newspapers, magazines, or watching news channels. This will help you relate theoretical knowledge to real-life scenarios.
2. What is CA CPT CA Foundation?
Ans. CA CPT (Common Proficiency Test) is the former name of the entry-level examination conducted by the Institute of Chartered Accountants of India (ICAI) for students aspiring to become chartered accountants. The examination has been renamed CA Foundation from July 2017 onwards. CA Foundation is the first level of the Chartered Accountancy course and consists of four papers: Principles and Practice of Accounting, Business Laws and Business Correspondence and Reporting, Business Mathematics and Logical Reasoning & Statistics, and Business Economics and Business and Commercial Knowledge.
3. Can you provide five frequently asked questions for CA CPT Economics?
Ans. Sure! Here are five frequently asked questions related to CA CPT Economics: 1. How much weightage does Economics carry in the CA CPT exam? 2. What are some important topics in Economics for the CA CPT exam? 3. Are there any specific books recommended for Economics preparation for the CA CPT exam? 4. Is it necessary to solve numerical problems in Economics for the CA CPT exam? 5. Can you suggest some tips to improve understanding and retention of Economics concepts for the CA CPT exam?
4. What is the level of complexity in CA CPT Economics?
Ans. The level of complexity in CA CPT Economics is considered to be moderate. The questions in the exam are designed to test the understanding of basic economic concepts and their application. The syllabus covers topics like demand and supply, production and cost, market structures, national income, money and banking, and economic reforms. While some numerical calculations are involved, the focus is more on conceptual clarity and problem-solving skills.
5. How can I search for highly searched questions on Google related to CA CPT Economics?
Ans. To search for highly searched questions on Google related to CA CPT Economics, you can use the following tips: 1. Use Google Trends: Go to the Google Trends website and enter relevant keywords like "CA CPT Economics" or "CA CPT Economics FAQs." This will show you the search interest over time and related queries that are popular. 2. Utilize Google Autocomplete: Start typing a query like "CA CPT Economics" in the Google search bar and see the suggestions that appear. These suggestions are based on popular search queries and can give you an idea of what people are searching for. 3. Explore online forums and communities: Visit online forums and communities where CA CPT aspirants or professionals discuss economics-related topics. Look for frequently asked questions or common doubts raised by users. 4. Check out popular study resources: Browse through popular study resources or educational websites that cater to CA CPT Economics preparation. They often have sections dedicated to frequently asked questions or common student queries. By using these methods, you can identify the most commonly searched questions and gather relevant information to provide detailed answers in your article.
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