www.bieap.gov.in Board Of Intermediate Education : Intermediate First Year Economics Syllabus

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INTERMEDIATE FIRST YEAR
ECONOMICS SYLLABUS
Paper – I Introductory Economic Theory

Unit – I : Introduction
a) Origin and meaning of Economics - Concept of Economics – Free goods, economic goods, consumer goods, producer goods, Intermediary goods, Wealth, Income, Utility, Value, Price, wants and welfare.
b) Definitions of Economics; Adam Smith, Alfred Marshall, Lionel Robbins,
Paul Samuelson, Jacob Viner.
c) Different methods of Economic Evaluation; Inductive and Deductive
methods; static and Dynamic Analysis; partial and general equilibrium; Micro and Macro Economic Analysis

http://bieap.gov.in/syllabus.html
http://bieap.gov.in/ecofirstyrsyllabus.pdf

Unit – II : Theory of Consumption
Cardinal and Ordinal utility, the law of Diminishing marginal utility –
limitations – importance; law of equimarginal utility – consumer’s equilibrium,importance of the law.
a) Theory of Demand – Determinants of demand, Demand schedule – individual and market demand schedules; The law of Demand, causes for the downward slope of the demand curve, Exceptions to law of demand

Unit – III : Elasticity of Demand
a) Types of Elasticity of Demand – Price, Income and cross elasticity of demand
b) Measurement of price elasticity of demand;
1) Total outlay method 2) Point method 3) Arc method
c) Determinants of Elasticity of demand; Importance of Elasticity of demand

Unit – IV : Indifference Curves
a) Criticism of Marginal utility analysis
b) Introduction to indifference curves – Assumptions – Indifference curve
schedule and indifference curve – Indifference Map – Budget line – consumer equilibrium

Unit – V : Theory of Production
a) Production function – Factors of production; Law of variable proportions;
b) Returns to scale – Increasing, constant and diminishing Returns to scale – Internal and External Economics
c) Supply – Determinants of supply – Supply functions – Law of supply
d) Cost curves – Fixed and variable costs, Money costs and Real costs – Total, Average and Marginal costs – Opportunity costs
e) Revenue – Total, Average and Marginal Revenue

Unit – VI : Theory of Value
a) Classification of Markets – Perfect competition – features – price
determination
b) Types of Imperfect competition – Monopoly – price determination – oligopoly – duopoly

Unit – VII : Theory of Distribution
a) Distribution of income – Determination of Factor prices – Marginal
productivity theory
b) Rent – Economic Rent – Contract Rent – Ricordian theory of Rent – quasi Rent – Scarcity Rent – Transfer earnings.
c) Wages – Meaning and types of wages – Money and real wage – Factors
determining Real Wages – Piece wage – Time wage
d) Interest; Meaning – Gross and Net interest
e) Profits – Meaning – Gross and Net profits

Unit – VIII : National Income
a) Definitions of National Income – Concepts – Gross National Product – Net National Product – National Income at factor cost – Personal income –
Disposable Income – Percapita Income
b) Components of National Income – Consumption – Investment – Government Expenditure – Exports minus Imports, (Y = C + I +G + X – M) c) Measurement of National Income – Product method – Income method – Expenditure method

Unit – IX : Macro Economic Aspects
a) Classical theory of Employment – criticism – Keynesian theory of income and Employment
b) Role of Government in Economic Activities – Public Revenue – Public
Expenditure – Public debt – Budget
c) International Trade – Exports and Imports – Balance of Payments

Unit – X : Money, Banking and Inflation
a) Money – Definitions and functions of money – Supply of Money – Types of Money
b) Banking – Commercial Banks – Functions, Central Bank – Functions –
Reserve Bank of India
c) Inflation – Definitions – Types – Effects of inflation – Measures to control Inflation – Monetary and Fiscal Policies