Structure, governance, value education, policies and administration
Paper 2 :Domain knowledge (Economics/Rural Economics)
Unit 1: Microeconomics
i. This unit focuses on the behavior of individual economic agents.
ii. Theory of Consumer Behavior: Explores concepts like indifference curve analysis, utility, demand analysis, and elasticity.
iii. Theory of Production and Costs: Covers production functions, cost curves in the short and long run, and returns to scale.
iv. Market Structures: In-depth analysis of perfect competition, monopoly, monopolistic competition, and oligopoly.
v. Factor Pricing: Theories of wage, rent, interest, and profit determination.
vi. General Equilibrium Analysis: Studies the interdependence of different markets.
vii. Welfare Economics: Covers Pareto optimality, social welfare functions, and market failure.
viii. Image of a supply and demand curve graph
Unit 2: Macroeconomics
i. This unit deals with the economy as a whole.
ii. National Income: Concepts and measurement methods.
iii. Determination of Output and Employment: Classical and Keynesian approaches.
iv. Consumption Function: Theories of consumption, including Keynes' psychological law.
v. Investment Function: Concepts of MEC (Marginal Efficiency of Capital) and MEI (Marginal Efficiency of Investment).
vi. Money and Inflation: Demand for and supply of money, and theories of inflation (demand-pull and cost-push).
vii. Business Cycles: Different theories and phases of business cycles.
Unit 3: Statistics and Econometrics
i. This section covers the quantitative methods used in economic analysis.
ii. Descriptive Statistics: Measures of central tendency, dispersion, skewness, and kurtosis.
iii. Probability Theory: Basic concepts and distributions (Binomial, Poisson, Normal).
iv. Sampling Methods & Hypothesis Testing: Techniques for data collection and testing statistical hypotheses (t-test, F-test, Chi-square test).
v. Correlation and Regression Analysis: Simple and multiple regression models.
vi. Econometric Issues: Problems like heteroscedasticity, multicollinearity, and autocorrelation.
Unit 4: Mathematical Economics
i. This unit applies mathematical methods to economic theory.
ii. Sets, Functions, and Continuity: Basic mathematical concepts.
iii. Differential Calculus: Applications in finding maxima and minima of functions.
iv. Static Optimization Problems: Unconstrained and constrained optimization.
v. Linear Programming: Graphical and simplex methods.
vi. Input-Output Model: Leontief's static and dynamic models.
Unit 5: International Economics
i. This unit examines economic interactions between countries.
ii. Theories of International Trade: Classical (Ricardo) and modern (Heckscher-Ohlin) theories.
iii. Balance of Payments: Structure, disequilibrium, and adjustment mechanisms.
iv. Exchange Rate: Determination and theories.
v. Trade Policy: Tariffs, quotas, and their effects.
vi. International Organizations: Functions of IMF, World Bank, WTO, and UNCTAD.
Unit 6: Public Economics
i. This section focuses on the role of the government in the economy.
ii. Public Revenue: Sources of public revenue, principles of taxation.
iii. Public Expenditure: Canons, effects, and theories of public expenditure.
iv. Public Debt: Sources, effects, and management.
v. Fiscal Policy: Objectives and instruments.
vi. Budgeting: Concepts and types of budgets.
Unit 7: Money and Banking
i. This unit covers the financial sector of the economy.
ii. Commercial Banking: Functions and credit creation.
iii. Central Banking: Functions of the Reserve Bank of India (RBI).
iv. Monetary Policy: Objectives, instruments, and its role in economic growth.
v. Money Market and Capital Market: Institutions and reforms in India.
vi. Financial Sector Reforms: Recent developments in the Indian banking sector.
Unit 8: Growth and Development Economics
i. This unit deals with long-term economic growth and development.
ii. Theories of Economic Growth: Harrod-Domar, Solow, and endogenous growth models.
iii. Theories of Economic Development: Adam Smith, Ricardo, Marx, and Schumpeter.
iv. Indicators of Economic Development: Human Development Index (HDI), Gender Development Index (GDI), etc.
v. Poverty and Inequalities: Concepts and measurement.
vi. Sustainable Development: Goals and strategies.
Unit 9: Environmental Economics and Demography
i. This section explores the link between the economy, environment, and population.
ii. Environment as a Public Good: Market failure, externalities.
iii. Valuation of Environmental Goods: Methods and challenges.
iv. Theories of Population: Malthusian and demographic transition theories.
v. Population and Economic Development: Linkages and impacts.
vi. Environmental Policies: Command and control vs. market-based instruments.
Unit 10: Indian Economy
i. This unit provides an in-depth analysis of the Indian economy.
ii. Economic Growth in India: Pattern and structure.
iii. Agriculture: Policies, technology, and challenges.
iv. Industry and Services: Policies, growth, and performance.
v. Foreign Trade and Investment: India's foreign trade policy and FDI.
vi. Economic Reforms: Liberalization, privatization, and globalization.
vii. Poverty, Inequality, and Unemployment in India: Current scenario and government policies.
