Production Possibility Frontier, opportunity costs; Microeconomic theory: consumer behaviour: preference, utility, indifference curve, its properties, income and prices, budget line; Derivation of demand, effects of price and income on demand, demand elasticities, consumer’s surplus; Production: output and inputs, short run and long run, law of variable proportions, returns to scale, different costs and revenue concepts in competitive market conditions, profit maximisation and supply function, supply elasticities, producer’s surplus; Markets: features of perfect competition, monopoly; Macroeconomic theory: national income: different aggregative concepts, methods of estimation of national income, circular flow of income, international trade and exchange rate, simple Keynesian model and income multiplier; Money and banking: role of central and commercial banks, money creation; Public finance: externalities, public revenue and expenditure, direct and indirect, progressive and regressive tax.
