Topics
Introduction
Introductory Macroeconomics
Introduction
- A Simple Economy
- Central Problems of an Economy
- Concepts of Production Possibility Frontier
- Organisation of Economic Activities
- Positive and Normative Economics
- Microeconomics and Macroeconomics
Indian Economy on the Eve of Independence
- Introduction to Indian Economy on the Eve of 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
Indian Economic Development
National Income Accounting
- 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
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 Economy 1950-1990
Liberalisation, Privatisation and Globalisation : An Appraisal
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
- Legal Definitions: Narrow and Broad Money
- Demonetisation
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
- Consumption and Saving Propensities
- 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
Human Capital Formation in India
Rural Development
Market Equilibrium
- Simple Monopoly in the Commodity Market
- Other Non - Perfectly Competitive Markets
Government Budget and the Economy
Open Economy Macroeconomics
- 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
Employment: Growth, Informalisation and Other Issues
- 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
Comparative Development Experiences of India and Its Neighbours
- Comparative Development Strategies: India, China, and Pakistan
- Developmental Path - a Snapshot View
- Demographic Indicators
- Gross Domestic Product and Sectors
- Indicators of Human Development
- Development Strategies - an Appraisal
Estimated time: 14 minutes
CBSE: Class 12
Historical Context
- This book explains how the economy of a capitalist country works in its specific historical setting.
- The discussion mainly applies to economies where production is organised on capitalist principles.
- The framework is less suitable for peasant and tribal economies where self‑consumption and non‑market production are common.
CBSE: Class 12
Capitalist Enterprise and Factors of Production
- A capitalist enterprise or firm is controlled by one or more entrepreneurs who make major decisions and bear most of the risk.
- Entrepreneurs run the firm using either their own capital or capital borrowed from others.
- For production, the firm uses land or natural resources, labour and capital as the main factors of production.
CBSE: Class 12
Revenue, Factor Incomes and Investment
- After production, the entrepreneur sells the output in the market and receives revenue from these sales.
- This revenue is distributed as rent for land, interest for capital, wages for labour and profit for the entrepreneur.
- A part of the profit is often used to buy new machinery or build new factories, and this investment expenditure raises the productive capacity of the economy.
CBSE: Class 12
Capitalist Economy
- A capitalist economy is one in which most means of production are privately owned.
- Goods and services are produced mainly for sale in the market rather than for self‑consumption.
- Labour services are bought and sold for a wage rate, and labour sold in this way is called wage labour.
CBSE: Class 12
Capitalism in the World Economy
- Economies strictly satisfying the conditions of capitalism have existed only for the last three to four hundred years.
- Only a limited number of countries in North America, Europe and Asia strictly qualify as capitalist.
- Many underdeveloped countries and tribal societies do not fully fit this capitalist framework.
CBSE: Class 12
Firms, State and Households
- Firms: Entrepreneurs hire wage labour, use land and capital, produce goods and services and sell them for profit while facing risk and uncertainty.
- State (Government): Frames and enforces laws, delivers justice, undertakes production, collects taxes and spends on infrastructure, education and health services.
- Households: Single individuals or groups who consume goods and services, save part of their income, pay taxes and earn wages, salaries, profits, rent and interest.
CBSE: Class 12
External Sector
- In addition to firms, Government and households, modern economies are linked with the rest of the world through the external sector.
- The external sector includes exports, where the domestic country sells goods to the rest of the world, and imports, where it buys goods from other countries.
- It also includes capital flows, where foreign capital may come into the domestic country and domestic capital may move to foreign countries.
CBSE: Class 12
Key Points: Context of the Present Book of Macroeconomics
- A capitalist economy is based on private ownership, and most goods and services are produced for sale in the market rather than for self-consumption.
- Entrepreneurs control firms, make important decisions, bear risks, and organise production using land, labour, and capital.
- Land, labour, and capital are the main factors of production used to produce goods and services.
- Revenue earned from selling output is distributed as rent to landowners, wages to workers, interest to capital providers, and profit to entrepreneurs.
- A part of the profit is often reinvested in new machinery, factories, and technology, increasing the productive capacity of the economy.
- Households consume goods and services, save income, pay taxes, and earn income in the form of wages, rent, interest, and profits.
- The economy is connected to the rest of the world through exports, imports, and the movement of capital between countries.
