Paper 4 : Business Economics (60 Marks)
PART I : BUSINESS ECONOMICS (60 Marks)
- Introduction to Business Economics
(i) Nature and scope of Business Economics
(ii) Basic Problems of an Economy and Role of Price Mechanism.
- Theory of Demand and Supply
(i) Meaning and determinants of demand, Law of demand and Elasticity of demand – Price, income and cross elasticity
(ii) Theory of consumer’s behaviour – Marshallian approach and Indifference curve approach
(iii) Demand Forecasting
(iv) Meaning and determinants of supply, Law of supply and Elasticity of supply.
- Theory of Production and Cost
(i) Meaning and Factors of production
(ii) Laws of Production – The Law of Variable proportions and Laws of Returns to Scale, Producer’s equilibrium
(iii) Concepts of Costs – Short-run and long-run costs, Average and marginal costs, Total, Fixed and variable costs.
- Price Determination in Different Markets
(i) Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly.
(ii) Price determination in these markets.
- Business Cycles
(iv) Causes behind these Cycles
CAF – P4 – BE – Ch1 : Nature & Scope of Business Economics
CAF – P4 – BE – Ch2 : Theory of Demand and Supply
CAF – P4 – BE – Ch3 : Theory of Production and Cost
CAF – P4 – BE – Ch4 : Meaning and Types of Markets
CAF – P4 – BE – Ch5 : Business Cycles
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