CA FOUNDATION SYLLABUS FOR BUSINESS ECONOMICS 2021

                                       

PART I: BUSINESS ECONOMICS 
(60 Marks) 

Objective:

To develop an understanding of the concepts and theories in Business Economics and apply such concepts and theories in simple problem-solving.

1. Introduction to Business Economics

· Meaning and scope of Business Economics

· Basic Problems of an Economy and Role of Price Mechanism.

2. Theory of Demand and Supply

· Meaning and determinants of demand, Law of demand and Elasticity of demand — Price, income and cross elasticity

· Theory of consumer’s behaviour – Marshallian approach and Indifference curve approach

· Meaning and determinants of supply, Law of supply and Elasticity of supply

· Demand Forecasting

3. Theory of Production and Cost

· Meaning and Factors of production

· Laws of Production – The Law of Variable proportions and Laws of Returns to Scale, Producer’s equilibrium

· Concepts of Costs ─ Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.

4. Price Determination in Different Markets

· Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly

· Price determination in these markets.

5. Business Cycles

· Meaning

· Phases

· Features

· Causes behind these cycles

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