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
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
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
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
- 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
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
The Theory of the Firm Under Perfect Competition
- Concept of Market
- Market Equilibrium
- Determination of Market Equilibrium
- Effect of Simultaneous change in Demand and Supply on Equilibrium Price
- 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: 17 minutes
CBSE: Class 12
GDP Size (PPP)
- China’s GDP (PPP) is 35 trillion (second largest in the world).
- India’s GDP (PPP) is 15 trillion.
- Pakistan’s GDP is 1.5 trillion (about 10% of India’s GDP).
- India’s GDP is about 42% of China’s GDP.
CBSE: Class 12
GDP Growth Rates
Annual Growth of Gross Domestic Product (%), 1980–2024
| Country | 1980–90 | 2015–2017 | 2024 |
|---|---|---|---|
| India | 5.7 | 7.3 | 6.5 |
| China | 10.3 | 6.8 | 5.0 |
| Pakistan | 6.3 | 5.3 | 3.1 |
- 1980s: China near double-digit growth; Pakistan ahead of India; India at bottom.
- 2015–17 and 2024: growth declined in China and Pakistan; India showed moderate increase.
CBSE: Class 12
Agriculture and Land Use
- China and Pakistan: higher urban population than India.
- China: only about 10% land cultivable; cultivable area ≈ 40% of India’s.
- Until 1980s: over 80% of China’s people depended on farming.
- Government later promoted shift to handicrafts, commerce and transport.
Sectoral GVA and Workforce, 2022
Sectoral Share of Employment and GDP (%) in 2022
| Sector | Contribution to GVA – India | China | Pakistan | Distribution of Workforce – India | China | Pakistan |
|---|---|---|---|---|---|---|
| Agriculture | 18 | 8 | 24 | 43 | 23 | 36 |
| Industry | 28 | 38 | 21 | 26 | 32 | 26 |
| Services | 54 | 54 | 55 | 31 | 45 | 38 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 |
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Agriculture GVA: 16–24% in India and Pakistan; workforce share higher in India (46%) than Pakistan (37%).
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Industry: Pakistan 24% workforce, 19% GVA; India 25% workforce, 29% GDP; China 32% workforce, 39% GDP.
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Services: highest GDP share in all three countries.
CBSE: Class 12
Structural Change and Services
- Normal pattern: shift from agriculture to industry to services; visible in China.
- India and Pakistan: low industry workforce (around 25%); direct shift from agriculture to services.
- 1980s service employment (%): India 17, China 12, Pakistan 27.
- 2019 service employment (%): India 29, China 45, Pakistan 38.
- Service sector is emerging as a major contributor to GDP and employment.
CBSE: Class 12
Sectoral Output Growth
Trends in Output Growth in Different Sectors, 1980–2018
| Country | 1980–90 – Agriculture | Industry | Service | 2014–18 – Agriculture | Industry | Service |
|---|---|---|---|---|---|---|
| India | 3.1 | 7.4 | 6.9 | 3.1 | 6.9 | 7.6 |
| China | 5.9 | 10.8 | 13.5 | 3.1 | 5.3 | 7.1 |
| Pakistan | 4 | 7.7 | 6.8 | 1.7 | 4.8 | 5.0 |
- Agriculture growth has declined in all three countries.
- China’s industry: near double-digit growth in 1980s, declined later; India and Pakistan’s industry growth also declined.
- China’s service growth remained strong; India’s service output grew positively and increasingly.
- China’s growth comes from manufacturing and services; India’s mainly from services; Pakistan shows deceleration in all sectors.
CBSE: Class 12
Key Points: Gross Domestic Product and Sectors
- China’s GDP is 35 trillion, India’s 15 trillion, Pakistan’s 1.5 trillion.
- In the 1980s, China led in GDP growth; Pakistan was ahead of India; later India’s growth improved while China and Pakistan’s declined.
- China has limited cultivable land but shifted workforce from agriculture to other sectors.
- India and Pakistan keep high agricultural employment despite lower agriculture share in GVA; industry and services are more productive.
- Service sector now contributes the highest share of GDP and employment growth in all three countries.
- Agriculture and industry growth rates have fallen, with China and India driven by services and Pakistan slowing in all sectors.
Related QuestionsVIEW ALL [14]
Compare and analyse the following information related to Annual Growth of Gross Domestic Product (GDP) of India and China:
Annual Growth of Gross Domestic Product
| Country | 1980 - 90 | 2015 - 17 |
| India | 5.7 | 7.3 |
| China | 10.3 | 6.8 |
On the basis of the data given below, identify the incorrect statement in terms of annual growth of GDP (%): (Choose the correct alternative)
| Annual Growth of Gross Domestic Product (%) 1980-2017 | ||
| Country | 1980-90 | 2015-2017 |
| India | 5.7 | 7.3 |
| China | 10.3 | 6.8 |
| Pakistan | 6.3 | 5.3 |
Identify the correctly matched pair in Column A and Column B from the following:
| Column A | Cloumn B | ||
| (1) | Product differentiation | (a) | Feature of Perfect Competition |
| (2) | Firms sell homogeneous products | (b) | Feature of Perfect Competition |
| (3) | Optimal allocation of resources in the long run | (c) | Limitation of Perfect Competition |
| (4) | Firms are price makers | (d) | Advantage of Perfect Competition |
