Written By: Ujjwal Matoliya
A (Micro Economics)
🔹 Unit 1: Introduction
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What is Production Possibility Curve (PPC)?
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Difference between Positive Economics and Normative Economics.
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Explain the Central Problems of an Economy (What, How, For Whom).
🔹 Unit 2: Consumer Behaviour
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Explain the Law of Diminishing Marginal Utility (with diagram).
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Factors affecting Price Elasticity of Demand.
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Difference between Budget Line and Budget Set.
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What are Complementary and Substitute Goods? Explain with examples.
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What are Giffen Goods?
🔹 Unit 3: Producer Behaviour & Supply
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Three stages of Law of Variable Proportions.
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Relationship between Average Cost (AC) and Marginal Cost (MC).
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Formula and relationship between TP, AP and MP.
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Why are Cost Curves ‘U’ shaped?
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Factors affecting Elasticity of Supply.
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Law of Supply and its exceptions.
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Reasons for rightward shift of Supply Curve.
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Six factors affecting Price Elasticity of Supply.
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Difference between contraction/expansion and increase/decrease in demand.
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Difference between demand and need.
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Difference between excess demand and deficient demand.
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Types of utility.
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Any three determinants of supply.
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Features of Propensity to Consume.
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Difference between Substitute Goods and Complementary Goods.
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Applications of Law of Supply.
🔹 Unit 4: Theory of Firm (Perfect Competition)
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Characteristics of Perfect Competition.
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Why is a firm a price taker in perfect competition?
🔹 Unit 5: Market Equilibrium
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Difference between Perfect Competition, Monopoly and Monopolistic Competition.
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What is Price Ceiling and Price Floor (Minimum Support Price)?
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Effect of increase in demand on Market Equilibrium (with diagram).
B (Macro Economics)
🔹 Unit 6: National Income
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Calculation of National Income (Income & Expenditure Method).
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Problem of Double Counting and how to avoid it.
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Circular Flow of Income (Two Sector Model).
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Difference between GDP and GNP.
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Important formulas:
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GVAmp = Value of Output – Intermediate Consumption
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GDPmp = C + I + G + (X – M)
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NDPfc = Compensation + Operating Surplus + Mixed Income
🔹 Unit 7: Money & Banking
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Difficulties of Barter System.
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Process of Credit Creation by Commercial Banks (with example).
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Components of Money Supply (M1, M2, M3, M4).
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Repo Rate and Reverse Repo Rate.
🔹 Unit 8: Income & Employment
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Components of Aggregate Demand (AD) and Aggregate Supply (AS).
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Mechanism of Investment Multiplier.
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Deficient Demand and its impact.
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Paradox of Thrift.
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Relationship between MPC and MPS.
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Elasticity of Demand formula.
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Multiplier formula:
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K = 1 / (1 – MPC)
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K = 1 / MPS
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ΔY / ΔI
🔹 Unit 9: Government Budget
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Difference between Direct Tax and Indirect Tax.
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Difference between Developmental and Non-Developmental Expenditure.
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Objectives of Government Budget (Reallocation, Stability).
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What is Deficit Budget? Types of Deficit.
🔹 Unit 10: Open Economy
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Difference between Balance of Payments (BOP) and Balance of Trade (BOT).
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Items of Current Account and Capital Account of BOP.
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Determination of Foreign Exchange Rate (Demand & Supply).
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Difference between Devaluation and Depreciation.