Level of knowledge: Basic Knowledge.

Aim:

(i) To provide basic knowledge of the framework of the Economic theory to the extent it is useful for accountants, and

(ii) to ensure that the students are aware of the economic development of the country leading to the contemporary state in which the economy is placed.

Detailed Contents:

Micro-Economics

1. Nature and scope of Economics, Econimic Models and their uses.

2. Demand and Supply, Law of Demand and Supply, Elasticity of Demand and Supply, Factors affecting Demand and Supply, Demand Forecasting.

3. Meaning of Production, Factors of Production, Scale of Production, Law of Returns, Major components of Costs.

4. Meaning of Market, Types of Markets, Theory of Price and Output Determination in different Market Structures and in different Economic Systems.

Indian Micro-Economic Environment

1. Economic growth in India -- Population and Economic growth.

2. General profile of agriculture and industry in India; Interdependence of industry and agriculture for economic advancement in India.

3. Industrial Policy of Government; Industrial growth in India and prospects.

4. National Income in India -- Theory and Application.

5. Fiscal Policy in India.

6. Indian Monetary Policy -- The functions of Commercial Banks and Reserve Bank of India.

7. India's International Trade -- Exports and Imports - Balance of Trade and Payments.