Economics

Economics

Study of resources, production, scarcity, decision making etc. Deals with topics like wealth, finance, recession, banking, productivity, and many more. A wide discipline of study that allows us to answer many questions like how will certain decisions affect the standard of living of the people?; and other questions around changes in the economy with automation, impact of weather on the economy and the stock market, and what not?

  • Micro and Macro Economics
  • Economic problem: Scarce Resources, Unlimited wants having alternative uses
  • Problem of Choice
  • Economic System: What, How and for whom to produce
  • Opportunity Cost and Trade Offs
  • Production Possibility Curve
  • Absolute Advantage, Comparative Advantage, Specialization and Trade
  • Property Rights and role of Incentives
  • Marginal Analysis

(1) Demand and Supply: How Market works

  • Demand and Supply
  • Determinants of Demand and Supply
  • Law of Demand and Supply
  • Movement along the Curves and Shifts in the Curve
  • Elasticity
  • Price, Income and Cross Elasticity of Demand
  • Price Elasticity of Supply
  • Market equilibrium
  • Role of Government: Price and Quality control, price ceiling and price floor

(2) Evaluating Wellness of Consumers and Producers

  • Consumers Surplus
  • Producers Surplus
  • Allocation  Efficiency
  • Tax Incidence and Deadweight Loss

(3) Theory of Consumer Choice

  • Concept of Utility, Total Utility and Marginal Utility
  • Law of Diminishing Marginal Utility
  • Individual and market Demand Curves
  • Reasons of Law

(4) Production and Cost

  • Factors of production
  • Production Function: short and Long Run
  • Theory  of production-Law of Diminishing Marginal Returns
  • Short and Long Run Cost
  • Relationship between Productivity and Cost
  • Economies and Diseconomies of Scale
  • Cost Minimizing Input Combination and Productive Efficiency

(5) Firm Behavior and Market Structure

    Profits

  • Accounting Vs Economic Profits
  • Normal Profit
  • Profit Maximization Rule: MR=MC
    Perfect Competition

  • Features of Perfect Competition
  • Nature of Demand and Marginal Revenue Curve
  • Profit Maximization
  • Short Run Supply and Shutdown Decision
  • Efficiency and Perfect Competition
    Monopolistic Competition

  • Features of Monopolistic Competition
  • Nature of Demand Curve and Marginal Revenue Curve
  • Profit Maximization
  • Product Differentiation and Role of Advertising
  • Excess Capacity and Inefficiency
    Monopoly

  • Features Of Monopoly
  • Nature of Demand Curve and Marginal Revenue Curve
  • Profit Maximization
  • Inefficiency of Monopoly
  • Price Discrimination
  • Concept Of Natural Monopoly
    Oligopoly

  • Features of Oligopoly
  • Interdependence, Collusion and Cartels
  • Game Theory and Dominant Strategy
  • Nash Equilibrium

(6) Factor market

  • Demand  and Supply of Factors
  • Derived factor Demand
  • Marginal Revenue Product
  • Hiring Decisions in market for Labor and Capital

(7) Market Failure and Role of Government

    Externalities

  • Marginal Social Benefit and Marginal Social Cost
  • Positive Externalities
  • Negative Externalities
  • Remedies
    Public Goods

  • Public Versus Private Goods
  • Provision of Public Goods
    Public Policy to promote Competition

  • Antitrust Policy
  • Regulation
    Income Distribution

  • Equity
  • Sources and Measures of Income Inequality
  • Lorenz Curve and Ginni Coefficient

(1)  National Income Accounting

  • Circular flow of Income(Four Sector Model)
  • Gross Domestic Product/National Income
  • Gross Domestic Product as a Measure of Economic Performance
  • Nominal Versus Real Gross Domestic Product
  • Estimation of GDP and its Components

(2)  Business Cycle

  • Phases of Business Cycle and Economic Fluctuations

(3)  Inflation

  • Price Indices: Consumer Price Index and GDP Deflator
  • Nominal and Real values
  • Inflation and its types: Demand Pull and Cost Push Inflation
  • Concept of Disinflation, Hyperinflation, Deflation, Stagflation
  • Costs of Inflation

(4)  Foreign exchange rate

  • Demand and Supply of Foreign Exchange
  • Exchange Rate determination
  • Currency Appreciation and Depreciations
  • Effect of Currency Appreciation and Depreciation on Exports and Imports

(5) Balance of Payment Accounts

  • Balance of trade
  • Balance of Payments
  • Current Account and Capital Account(also called Financial Account)
  • Trade Barriers

(6)  Unemployment

  • Definition and Measurement of Unemployment
  • Causes of Unemployment
  • Types of Unemployment
  • Natural Rate of Unemployment

(7) National Income and Price Determination

    Aggregate Demand

  • Determinants of Aggregate Demand
  • Multiplier and Crowding- Out Effects
    Aggregate Supply

  • Determinants of Aggregate Supply
  • Sticky Versus Flexible wages and Prices
    Macroeconomic Equilibrium

  • Real Output and Price Level
  • Short and Long Run
  •  Actual Versus Full Employment Output

Financial Sector

    Money, Banking and Financial Market

  • Definition of Financial Assets: Money, Stock and Bonds
  • Money Supply and its Measures
  • Money Demand
  • Banks and Creation of Money using T Accounts
  • Money Multiplier
  • Money market Equilibrium and Equilibrium Nominal Interest Rate
    Loanable Fund Market

  • Demand and Supply of Loanable Funds
  • Equilibrium Real Interest Rate
  • Crowding Out
    Central Banking Policy

  • Tools of Central Bank Policy and their impact on Money Supply
  • Quantity Theory Of Money
  • Nominal and Real Interest Rate

(9) Stabilization Policy

    Fiscal and Monetary Policies

  • Demand- side effects
  • Supply- Side Effects
  • Government Deficits and
    Phillips Curve

  • Short Run and Long Run Phillips Curve
  • Trade off Between Inflation and Unemployment

(10) Economic Growth

  • Meaning Of Economic growth
  • Determinants of Economic Growth
  • Investment in Human Capital
  • Investment in Physical Capital
  • Research and Development and Technological Progress
  • Growth Policy

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