CA Foundation Business Economics

Meaning and scope of Business Economics, basic problems of an economy, role of price mechanism

Determinants of demand, law of demand, price/income/cross elasticity, indifference curve approach, determinants of supply, law of supply, elasticity of supply, market equilibrium and social efficiency

Factors of production, short run and long run, law of variable proportions, laws of returns to scale, producer's equilibrium, short-run and long-run costs, average and marginal costs, fixed and variable costs

Perfect competition, monopoly, monopolistic competition, game theory and oligopoly, price-output determination under different market forms

Macro economic aggregates, measurement of national income, Keynes' two sector basic model, three sector and four sector models

Meaning, phases of business cycle, features, causes behind business cycles

Fiscal functions, centre and state finance, market failure and government intervention, budget making, sources of revenue, expenditure management, management of public debt, fiscal policy

Concept of money demand, theories of demand for money, concept of money supply, cryptocurrency and new terminology, monetary policy

Theories of international trade including Krugman's intra-industry trade, instruments of trade policy, trade negotiations, exchange rates and economic effects, foreign direct investment

Indian economy before 1950 — Chanakya and Nand Vansh era; OECD paper (1950–1991); basic knowledge from 1991 onwards — liberalisation, privatisation, globalisation