Topics
National Income and Related Aggregates
- Macroeconomics Vs Microeconomics
- Representative Goods and Sectors
- Macroeconomic Agents and Government Role
- Emergence of Macroeconomics
- Context of the Present Book of Macroeconomics
- Meaning of Economic Wealth and Final Goods
- Stocks, Flows, and Depreciation
- Capital Formation, Trade-off & Circular Flow of Income
- Circular Flow of Income and Methods of Calculating National Income
- Output Method/Product Method
- Expenditure Method
- Income Method
- Factor Cost, Basic Prices and Market Prices
- Some Macroeconomic Identities
- National Disposable Income
- Private Income
- National Income Aggregates
- Real GDP and Nominal GDP
- GDP and Welfare
Introductory Macroeconomics
Introduction
- A Simple Economy
- Central Problems of an Economy
- Concepts of Production Possibility Frontier
- Organisation of Economic Activities
- Positive and Normative Economics
- Macroeconomics Vs Microeconomics
Development Experience (1947-90) and Economic Reforms since 1991
- India's Economy Before Independence
- Low Level of Economic Development Under the Colonial Rule
- Agricultural Sector in India
- Industrial Sector
- Foreign Trade of India
- Demographic Condition
- Occupational Structure
- Infrastructure
- Post-Independence Economic Systems and Planning
- Five Year Plans (FYP)
- Agriculture
- Industry and Trade
- Trade Policy: Import Substitution
- The 1991 Economic Crisis and Reforms
- Background of the New Economic Policy
- Liberalisation
- Privatisation
- Globalisation
- World Trade Organisation (WTO)
- Impact of the Economic Reforms
Current Challenges Facing Indian Economy
- Concept of Human Capital
- Sources of Human Capital
- Human Capital and Economic Growth
- Human Capital and Human Development
- State of Human Capital Formation in India
- Growth of Education Sector in India
- Challenges and Future Prospects in Education
- Rural Development in India
- Credit and Marketing in Rural Areas
- Agricultural Market System
- Diversification into Productive Activities
- Sustainable Development and Organic Farming
- The Nature and Importance of Work in Society
- Workers and Employment
- Participation of People in Employment
- Self-employed and Hired Workers
- Employment in Firms, Factories and Offices
- Growth and Changing Structure of Employment
- Informalisation of Indian Workforce
- Concept of Unemployment
- Government and Employment Generation
- Environment and Sustainable Development in India
- State of India’s Environment
- Concept of Sustainable Development
- Strategies for Sustainable Development
Money and Banking
- Concept of Money
- Functions of Money
- Demand for Money and Supply of Money
- Money Creation by Banking System
- Limits to Credit Creation and Money Multiplier
- Policy Tools To Control Money Supply
- Demand and Supply for Money : A Detailed Discussion
- The Transaction Motive
- The Speculative Motive
- Various Measures of Supply of Money
- Narrow and Broad Money
- Demonetisation
Theory of Consumer Behaviour
- Consumer Behaviour: The Problem of Choice
- Basic Concepts of Microeconomics > Utility
- Cardinal Approach (Utility Analysis)
- Derivation of Demand Curve in the Case of a Single Commodity
- Ordinal Utility Analysis/Indifference Curve Analysis
Indian Economic Development
Determination of Income and Employment
- Aggregate Demand and Its Components
- Consumption
- Investment
- Determination of Income in Two-sector Model
- Determination of Equilibrium Income in the Short Run
- Macroeconomic Equilibrium with Price Level Fixed
- Effect of an Autonomous Change in Aggregate Demand on Income and Output
- The Multiplier Mechanism
- Paradox of Thrift
- Equilibrium Output and Employment
Development Experience of India – a Comparison with Neighbours
Introductory Microeconomics
Production and Costs
- Production Function
- Basics of Production Theory
- Variation of Output in the Short-Run Returns to a Factor
- Relation Between Total, Average and Marginal Product
- Law of Variable Proportions
- Average and Marginal Physical Products
- Changes in Production
- Cost - Fixed Cost
- Cost -variable Cost
- Behaviour of Cost in the Short - Run
- Relationship Between Average Variable Cost and Average Total Cost and Marginal Cost
- Concept of Opportunity Cost
- Marginal Revenue
- Producer's Equilibrium
- Law of Supply
- Market Supply Schedule
- Distinguish between Stock and Supply
- Determinants of Supply
- Movements Along and Shifts in Supply Curve
- Measurement of Elasticity of Supply > Percentage Method
- Methods of Measurement of National Income
- Cost Concepts > Marginal Cost
- The Law of Diminishing Marginal Product
- Shapes of Product Curves
- Costs in Long Run Period
- Returns to Scale
The Theory of the Firm Under Perfect Competition
- Concept of Market
- Market Equilibrium
- Determination of Market Equilibrium
- Effects of Changes (Shifts) in Demand on Equilibrium Price and Equilibrium Quantity
- Perfect Competition
- Imperfect Competition
- Classification of Market Structure
- Oligopoly
- Market Forms - Perfect Oligopoly
- Market Forms - Imperfect Oligopoly
- Equilibrium Price
- Applications of Tools of Demand and Supply Price Control
- Price Ceiling
- Price Floor
- Revenue Concepts
- Profit Maximisation Objective
- Determinants of a Firm’s Supply Curve
- Market Supply Schedule
- Price Elasticity of Supply
Government Budget and the Economy
Market Equilibrium
- Simple Monopoly in the Commodity Market
- Other Non - Perfectly Competitive Markets
Balance of Payments
- Open Economy and Its Linkages
- Concept of Balance of Payments
- Current Account
- Capital Account
- Balance of Payments Surplus and Deficit
- Foreign Exchange Market
- Foreign Exchange Rate
- Determination of the Exchange Rate
- Merits and Demerits of Flexible and Fixed Exchange Rate Systems
- Managed Floating Exchange Rate System
Estimated time: 20 minutes
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Meaning
- Environment is the total planetary inheritance and the totality of all resources
- It includes two types of elements:
- Biotic elements – birds, animals, plants, forests, fisheries
- Abiotic elements – air, water, land, rocks, sunlight
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Definition: Environment
Environment is defined as the total planetary inheritance and the totality of all resources. It includes all the biotic and abiotic factors that influence each other.
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Four Functions of the Environment
- Supplies renewable resources (forests, fish) and non-renewable resources (fossil fuels).
- Assimilates waste.
- Sustains life through genetic and biodiversity.
- Provides aesthetic services (e.g., scenery).
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Carrying Capacity and Environmental Crisis
- When resource extraction exceeds regeneration rate, or waste generation exceeds assimilative capacity, the environment can no longer sustain life properly.
- This leads to an environmental crisis.
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Current Environmental Problems in India
- Rising population and high-consumption standards are stressing resources.
- Some resources are facing extinction.
- Wastes are exceeding absorptive capacity.
- 70% of water in India is polluted.
- Water has become an economic good due to pollution and overuse.
- Air and water quality degradation is raising health costs.
- Global issues like global warming and ozone depletion are adding financial burdens on governments.
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Global Warming
- Gradual increase in the average temperature of the earth's lower atmosphere.
- Caused by increased greenhouse gases since the Industrial Revolution
- Largely human-induced – through fossil fuel burning and deforestation.
- CO₂ has risen 31% and CH₄ has risen 149% above pre-industrial levels since 1750.
- Atmospheric temperature rose approximately 0.6°C over the past century.
- Sea levels have risen several inches.
- Consequences: polar ice melt, sea-level rise, coastal flooding, disruption of water supplies, species extinction, more tropical storms, spread of tropical diseases.
- Kyoto Protocol (1997) – agreement for industrialised nations to cut greenhouse gas emissions.
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Ozone Depletion
- Reduction in stratospheric ozone due to chlorine and bromine compounds.
- Main sources: CFCs (used in refrigeration and aerosols) and halons (used in fire extinguishers).
- Results in more UV radiation reaching the earth.
- Causes: skin cancer, harm to phytoplankton, aquatic organisms, and plant growth.
- Approximately 5% reduction in ozone layer observed between 1979-1990.
- Montreal Protocol – bans CFCs and other ozone-depleting substances.
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Historical Context: Why Environmental Problems are Worse Now
- In early civilisation: low population + no large-scale industrialisation → demand for environmental resources was below supply → pollution stayed within absorptive capacity.
- After population explosion and the industrial revolution: demand for production and consumption exceeded regeneration and absorptive capacities.
- This caused a reversal of the supply–demand relationship:
- High demand for environmental services.
- Limited supply due to overuse and misuse.
- Pollution and waste generation became critical issues.
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India's Development Context
- India's economic development has come at a high environmental cost.
- Moving into the globalisation era requires consciously choosing a sustainable development path.
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Key Points: Environment and Sustainable Development in India
- Environment = total planetary inheritance; includes biotic and abiotic elements.
- Two critical thresholds: resource extraction must not exceed regeneration rate; waste must not exceed assimilative capacity.
- 70% of water in India is polluted; water has become an economic good.
- Global warming is human-induced; CO₂ up 31%, CH₄ up 149% since 1750; governed by Kyoto Protocol (1997).
- Ozone depletion caused by CFCs and halons; ~5% reduction (1979–1990); governed by Montreal Protocol.
- Environmental crisis intensified post industrial revolution due to demand exceeding regeneration and absorptive capacities
