Topics
Micro Economics
Introduction to Micro and Macro Economics
- Branches of Economics
- Father of Econometrics: Ragnar Frisch
- Microeconomics
- Macroeconomics
- Micro Economics VS Macro Economics
Introduction to Micro Economics
- Analysis of Market Structure
- Microeconomics
- Micro Economics - Slicing Method
- Use of Marginalism Principle in Micro Economics
- Micro Economics - Price Theory
- Micro Economic - Price Determination
- Micro Economics - Working of a Free Market Economy
- Micro Economics - International Trade and Public Finance
- Welfare Economics
- Micro Economics - Useful to Government
- Assumption of Micro Economic Analysis
Consumers Behavior
Analysis of Demand and Elasticity of Demand
Analysis of Supply
Types of Market and Price Determination Under Perfect Competition
Factors of Production
- Factors of Production - Feature of Capital
- Factors of Production
Macro Economics
Utility Analysis
- Basic Concepts of Microeconomics > Utility
- Commodities and Their Specific Utility for Individuals
- Total Utility and Marginal Utility
- Law of Diminishing Marginal Utility
- Paradox of Value
- Relationship Between Marginal Utility and Price
- Indifference Curve Analysis by Hicks and Allen
Introduction to Macro Economics
- Macroeconomics
- Micro Economics VS Macro Economics
- Allocation of Resource and Economic Variable
National Income
Determinants of Aggregates
- Total Demand for Good and Services
- Concept of Aggregate Demand and Aggregate Supply
- Consumption
- Investment Demand
- Government Demand
- Foreign Demand
- Difference Betweeen Export and Import
- Effect of Population of Consumption Expediture
- Types of Investment Expenditure
- Micro Eco-Equilibrium
Money
- Concept of Money
- Functions of Money
- Standard of Deferred Payment
- Standard of Transfer Payment
- Money - Store of Value
- Barter system
- Monetary Payments
- Concept of Good Money
Commercial Bank
Central Bank
- Central Bank
- Central Bank Function - Banker's Bank
- Central Bank as a Controller of Credit
- Monetary Function of Central Bank
- Non Monetary Function of Central Bank
- Methods of Credit Control
- Repo Rate and Reverse Repo Rate
- Central Bank Function - Goverment Bank
Public Economics
- Introduction of Public Economics
- Features of Public Economics
- Government Budget
- Objectives of Government Budget
- Features of Government Budget
- Public Economics - Budget (1 Year)(1 April to 31 March)
- Types of Budget
- Taxable Income
- Budgetary Accounting in India
- Budgetary Accounting - Consolidated , Contingency and Public Fund
- Components (Structure) of the Government Budget
- Factor Influencing Government Budget
Demand Analysis
- Concept of Demand
- Demand Schedule
- Individual Demand Schedule
- Market Demand Schedule
- Demand Curve
- Individual Demand Curve
- Market Demand Curve
- Reasons for the Downward Slope of the Demand Curve
- Types of Demand
- Determinants of Demand
- Law of Demand
- Exceptions to the Law of Demand
- Variations in Demand
- Changes in Demand
Elasticity of Demand
- Concept of Elasticity of Demand
- Types of Elasticity of Demand > Income Elasticity
- Types of Elasticity of Demand > Cross Elasticity
- Types of Elasticity of Demand > Price Elasticity
- Perfectly Elastic Demand
- Perfectly Inelastic Demand
- Unitary Elastic Demand
- Relatively Elastic Demand
- Relatively Inelastic Demand
- Methods of Measuring Price Elasticity of Demand
- Linear Demand Curve
- Non-Linear Demand Curve
- Factors Influencing the Elasticity of Demand
- Importance of Elasticity of Demand
- Determinants of Price Elasticity of Demand
Supply Analysis
- Concept of Supply
- Concept of Total Output
- Concept of Stock
- Distinguish between Stock and Supply
- Supply Schedule
- Individual Supply Schedule
- Market Supply Schedule
- Determinants of Supply
- Law of Supply
- Variations in Supply
- Changes in Supply
- Cost Concepts > Total Costs
- Cost Concepts > Average Cost
- Cost Concepts > Marginal Cost
- Revenue Concepts
- Total Revenue
- Average Revenue
- Marginal Revenue
Forms of Market
- Concept of Market
- Classification of Market > Based on Place
- Classification of Market > Based on Place
- Classification of Market > Based on Time
- Classification of Market > Based on Competition
- Perfect Competition
- Price Determination Under Perfect Competition
- Imperfect Competition
- Monopoly
- Concept of Monopsony
- Oligopoly
- Monopolistic Competition
Index Numbers
- Index Numbers
- Features of Index Numbers
- Types of Index Numbers
- Index Numbers Used by Government of India
- Significance of Index Numbers
- Rebasing of GDP, IIP, and WPI
- Construction of Index Numbers
- Methods of Constructing Index Numbers > Simple Index Number
- Price Index Number
- Quantity Index Number
- Value Index Number
- Methods of Constructing Index Numbers > Weighted Index Number
- Laaspeyre’s Price Index Number
- Paasche’s Price Index Number
- Concepts of Sensex and Nifty
- Crops in India's Agricultural and Industrial Production Index
- Limitations of Index Numbers
National Income
- Concept of National Income
- Features of National Income
- Circular Flow of National Income
- Two Sector Model of Circular Flow of National Income
- Three Sector Model of Circular Flow of National Income
- Four Sector Model of Circular Income
- Different Concepts of National Income
- Concept of Green GNP
- Methods of Measurement of National Income
- Output Method/Product Method
- Income Method
- Expenditure Method
- Concept of Mixed income
- Difficulties in the Measurement of National Income
- Importance of National Income Analysis
Public Finance in India
- Public Finance
- Difference Between Public Finance and Private Finance
- Structure of Public Finance > Public Expenditure
- Important Social Welfare Schemes by the Government
- Structure of Public Finance > Public Revenue
- Public Revenue > Taxes
- Types of Taxes
- Direct Tax
- Indirect Tax
- Public Revenue > Non-tax Revenue
- Structure of Public Finance > Public Debt
- Structure of Public Finance > Fiscal Policy
- Structure of Public Finance > Financial Administration
- GST(Economics)
- Government Budget
- Revenue and Capital Budgets
- Types of Budget
- Importance of Budget
Money Market and Capital Market in India
- Concept of Financial Market
- Money Market in India
- Structure of Money Market in India > Organized Sector
- Structure of Money Market in India > Organized Sector
- Reserve Bank of India (RBI)
- Commercial Banks
- Co-operative Banks
- Development Financial Institutions (DFIs)
- Discount and Finance House of India (DFHI)
- Structure of Money Market in India > Unorganized Sector
- Money Market Instruments
- Role of Money Market in India
- Problems of the Indian Money Market
- Reforms Introduced in the Money Market
- Recent Developments in Banking Sector
- Capital Market in India
- Structure of Capital Market in India
- Role of Capital Market in India
- Problems of the Capital Market
- Regional Stock Exchanges in India
- Reforms Introduced in the Capital Market
- Economic Policy in an Economy
Foreign Trade of India
- India’s Trade Relations Before 1947
- Internal Trade
- Foreign Trade of India
- Types of Foreign Trade
- Role of Foreign Trade
- India’s Recent Trade Relations with China and Japan
- Composition of India’s Foreign Trade
- India’s Foreign Trade Share in GNI
- Composition of India's Imports
- Composition of India's Exports
- Direction of India’s Foreign Trade
- Trends in India’s Foreign Trade since 2001
- Concept of Balance of Payments
- Balance of Trade
- Member Nations of OPEC and OECD
- Introduction
- Definition: Microeconomics
- Scope
- Features: Flowchart
- Importance: Flowchart
- Limitations
- Subject Matter of Microeconomics
- Usefulness of Microeconomics
- Real-Life Application
- Key Point Summary
Maharashtra State Board: Class 11
CISCE: Class 12
CISCE: Class 12
Introduction
Microeconomics looks at the “small parts” of an economy—how individual people, households, and firms make decisions about prices, production, and resource use.
Maharashtra State Board: Class 11, 12
CISCE: Class 12
CISCE: Class 12
Definitions: Microeconomics
- Kenneth Boulding: "Microeconomics is the study of particular firms, particular households, individual prices, wages, incomes, individual industries, and particular commodities."
- Maurice Dobb: “Microeconomics is, in fact, a microscopic study of the economy.”
- Prof. A. P. Lerner: "Microeconomics consists of looking at the economy through a microscope, as it were, to see how the millions of cells in the body of the economy-the individuals or households as consumers and individuals or firms as producers–play their part in the working of the whole economic organism."
- "Micro-economics theory explains the composition or allocation of total production, why more of some things are produced than of others." — Watson
- "Micro economics is concerned with economic activities of economic units as consumers, resource owners and business firms." — Leftwitch
- "Micro economics deals with small parts of the economy." — Shapiro
Maharashtra State Board: Class 11
Scope
- Theory of Product Pricing
The Theory of Product Pricing examines how prices of individual commodities are determined in markets through the interaction of demand and supply forces - Theory of Factor Pricing
The Theory of Factor Pricing determines how rewards are distributed to the four factors of production that contribute to the production process. - Theory of Economic Welfare
The Theory of Economic Welfare focuses on achieving efficiency in resource allocation to maximise societal satisfaction.
Maharashtra State Board: Class 11
Features: Flowchart
Maharashtra State Board: Class 11
Importance: Flowchart
CISCE: Class 12
Limitations
- Unrealistic Assumptions: Often assumes things like full employment, which is rare.
- Limited Scope: Some big economic issues (like fiscal policy or inflation) are not covered.
- Wrong Laissez-Faire Assumptions: Assumes minimal government role, which is outdated.
- Static Nature: Assumes conditions are constant and does not analyze rapid changes.
- Only Micro View: Gives a partial picture; ignores broader, economy-wide issues.
CISCE: Class 12
Subject Matter of Microeconomics
- Focus: How individuals and firms decide on buying, selling, producing, and allocating resources.
- Key Areas:
- Theory of Demand: How consumers choose what to buy.
- Theory of Production: How firms decide what and how much to produce.
- Theory of Cost: How firms manage costs.
- Theory of Product Pricing: How prices are set in markets.
- Theory of Distribution: How wages, rent, interest, and profit are determined.
- Welfare Economics: How resources can be allocated efficiently to maximise societal welfare.
CISCE: Class 12
Usefulness of Microeconomics
- Operation of an Economy: Explains how market economies work—how millions of buyers and sellers interact.
- Efficient Use of Resources: Helps allocate scarce resources for maximum growth and stability.
- Economic Welfare: Tools for maximising societal welfare are built on microeconomics.
- Managerial Economics: Business decisions and price analysis use microeconomic methods.
- Predictions: Microeconomic theories predict future market outcomes—useful for planning.
- Economic Policy: Government uses microeconomic analysis to set policies for production and welfare.
- International Trade: Microeconomics explains gains from trade and exchange rates.
- Applied Economics: Useful in areas like public finance and business analysis.
Maharashtra State Board: Class 11
Real-Life Application
Deciding to buy a movie ticket instead of coffee illustrates consumer choice and opportunity cost.
Maharashtra State Board: Class 11, 12
Key Points: Microeconomics
- Microeconomics focuses on individual economic units and markets.
- Supply–Demand and Marginal Analysis are core tools.
- All definitions highlight the focus on individual economic units.
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