PSEB ECONOMICS (HUMANITIES GROUP)

ECONOMICS

(HUMANITIES GROUP)

Time : 3  Hours                                                                                   Theory: 70 Marks                                                                                                        CCE: 30 Marks

Total: 100 Marks

STRUCTURE OF QUESTION PAPER

1.       The Question Paper will cover whole of the prescribed syllabus.

2.       All Questions will be compulsory.

3.       The questions paper will comprise of 15 questions in total.

4.       The question paper will have 3 Sections A, B & C.

SECTION A

          This section will consist of Q. No. 1 which will be objective type consisting of 12 sub parts (i.e. 6 questions from Part A and 6 questions from Part B of syllabus). Each sub part carry 1 mark. Objective type questions may include questions with one word to one sentence answer/fill in the blank/true or false/multiple choice type questions.

SECTION B

          This section will consist of 10 short answer type questions (i.e. 4 questions from Part A and 6 questions from Part B of syllabus) carrying 3 marks each. Answer of each question should be given in 50-60 words. Out of 6 questions from Part-B one question will be numerical.

SECTION C

          This section will consist of 4 long answer type questions (i.e. 2 questions from Part A and 2 questions from Part B of syllabus) with internal choice carrying 7 marks each. Answer of each question should be given in 200-250 words. Out of 2 questions from Part-B one question will be numerical.

Syllabus	Units	Sec A 1 Mark Questions	Sec B 3 Mark Questions	Sec C 7 Mark Questions	Total Marks
PART - A Micro Economics	1 2 3 4	1 2 2 1	1 1 1 1	1 Q from Unit 1 & 2 1 Q from Unit 3 & 4	32
PART – B Macro Economics	5 6 7 8 9	1 1 1 2 1	1 2 1 1 1	1 Q from Unit 5 & 6 1 Q from Unit 7,  8 & 9	38
Total	9	12	10	4	70

SYLLABUS

PART-A (INTRODUCTORY MICRO ECONOMICS)

Unit–1 INTRODUCTION

Micro Economics: Meaning; Difference between Micro and Macro Economics, Central Problems of an Economy, Production Possibility Curve and Opportunity Cost.

Unit-2 CONSUMER BEHAVIOUR AND DEMAND

i.         Consumer’s Equilibrium:- Meaning, Attainment of equilibrium through Utility Approach (one and two commodity case).

ii.       Theory of Demand: Meaning of Demand, Types of Demand: Individual and Market Demand, Determinants of Demand, Demand Schedule, Demand Curve, Movement along and shift in Demand Curve.

iii.      Price Elasticity of Demand: Measurement of Price Elasticity of Demand- Percentage, Total expenditure and Geometric method.

Unit-3 PRODUCER BEHAVIOUR AND SUPPLY

i.             Production-Meaning, Concept of Production, Function: Returns to Factor and Returns to Scale.

ii.           Theory of Supply: Meaning of Supply, Types of Supply: Individual and Market Supply, Determinants of Supply, Supply Schedule, Supply Curve, Law of Supply, Movement along and shifts in supply curve, Price Elasticity of Supply, Measurement of Price Elasticity of Supply; Percentage and geometric method.

iii.          Concepts of Costs: Short Run Cost Curves; Fixed and Variable Costs, Total, Average and Marginal Costs.

     Concepts of Revenue: Total, Average and Marginal Revenue and their relationship.

iv.          Producer’s Equilibrium with the help of MC and MR.

Unit-4 FORMS OF MARKET AND PRICE DETERMINATION

i.             Forms of Market: Perfect Competition, Monopoly, Monopolistic Competition-Their Meaning and Features.

ii.           Price Determination under Perfect Competition- Equilibrium Price, Effect of shifts in Demand and Supply.

PART-B (INTRODUCTORY MACRO ECONOMICS)

Unit-5 NATIONAL INCOME AND RELATED AGGREGATE

i.             Basic Concept and Measurement of National Income (introduction only)

ii.           Macro Economics: Meaning, Circular flow of Income,

Concepts of GDP, GNP, NDP, NNP (at market price and factor cost), National Disposable Income (Gross & Net); Private Income, Personal Income and Personal Disposable Income.

iii.          Measurement of National Income-Value Added Method, Income Method & Expenditure Method

Unit-6 DETERMINATION OF INCOME AND EMPLOYMENT.

i.             Aggregate Demand, Aggregate Supply and their Components.

ii.           Propensity to Consume and Propensity to Save (Average and marginal).

iii.          Meaning of Involuntary-Unemployment, Concept of Full Employment.

iv.          Determination of Equilibrium level of Income and Employment-Two sector model.

v.            Concept of Investment Multiplier and its working.

vi.          Problems of excess and deficient Demand. Measures to correct excess and deficient Demand, Availability of Credit, Change in Government Spending.

Unit-7 MONEY AND BANKING

i.         Money: Meaning, Evolution and Functions.

ii.       Central Bank: Meaning and Functions.

iii.      Commercial Banks: Meaning and Functions.

iv.      Recent significant reforms and issues in Indian Banking System; Privatisation and Modernization.

Unit-8 GOVERNMENT BUDGET AND THE ECONOMY

i.             Government Budget. Meaning and its Components, Objectives of Government Budget.

ii.           Budget Receipts – Revenue Receipts and Capital Receipts.

iii.          Budget Expenditure-Revenue and Ca pital Expenditure, Plan and Non-Plan Expenditure and Development and Non-Development Expenditure.

iv.          Balance Budget, Surplus Budget and Deficit Budget: Their Meaning and Implications; Types of Deficit Budget-Revenue Deficit, Fiscal Deficit and Primary Deficit(meaning and implications); Measures to contain different Deficits. Downsizing the role of Government: Meaning and Implications.

Unit-9 BALANCE OF TRADE AND BALANCE OF PAYMENTS.

i.             Foreign Exchange Rate: Meaning, Fixed and Flexible Exchange Rate System-Meaning, Merits and Demerits.

ii.           Determination of Flexible Exchange Rate System through Demand and Supply.

iii.          Balance of Payment Accounts; Meaning and Components.

iv.          A brief analysis about recent exchange rate issue.