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: 19 minutes
CBSE: Class 12
Maharashtra State Board: Class 9
Tamil Nadu Board of Secondary Education: Class 12
Maharashtra State Board: Class 9
Tamil Nadu Board of Secondary Education: Class 12
Meaning
- The World Trade Organisation (WTO) is an international organisation that regulates global trade.
- It follows a rule-based, multilateral trading system.
- Established on 1 January 1995 as the successor to GATT (1948).
CBSE: Class 12
Maharashtra State Board: Class 9
Tamil Nadu Board of Secondary Education: Class 12
Maharashtra State Board: Class 9
Tamil Nadu Board of Secondary Education: Class 12
Origin and Background
- GATT was established in 1948 with 23 member countries.
- WTO replaced GATT on 1 January 1995.
- It provides a permanent framework for international trade.
- The Ministerial Conference is its highest decision-making body.
Maharashtra State Board: Class 9
Tamil Nadu Board of Secondary Education: Class 12
Tamil Nadu Board of Secondary Education: Class 12
Objectives
- Promote free, fair, and non-discriminatory trade.
- Reduce tariff and non-tariff barriers.
- Eliminate discrimination in international trade.
- Facilitate trade in goods and services.
- Ensure optimum use of world resources.
- Raise the standard of living.
- Protect the interests of developing and least developed countries (LDCs).
- Promote sustainable development.
Maharashtra State Board: Class 9
Functions
- Regulates international trade rules.
- Administers multilateral trade agreements.
- Settles trade disputes between member countries.
- Monitors trade policies of member nations.
- Covers trade in goods, services, agriculture, intellectual property (TRIPS), and investment-related measures (TRIMS).
Maharashtra State Board: Class 9
India and WTO
- India became a founding member on 1 January 1995.
- Reduced import restrictions and tariff rates.
- Opened the insurance sector to private and foreign investment.
- Supports the interests of developing countries in WTO negotiations.
- Signed SAPTA and provided trade concessions to SAARC countries.
CBSE: Class 12
Maharashtra State Board: Class 9
Maharashtra State Board: Class 9
Impact on India
Economic
- Increased trade liberalisation.
- Encouraged foreign investment.
- Commercialisation of sectors like electricity, water, transport, education, and healthcare.
Social
- Reduction in Below Poverty Line (BPL) population.
- Decline in infant mortality.
- Improved drinking water facilities.
- Better wastewater management.
CBSE: Class 12
Growth of GDP and Major Sectors (%)
| Sector | 1980–91 | 1992–2001 | 2002–07 | 2007–12 | 2012–13 | 2013–14 | 2021–22 |
|---|---|---|---|---|---|---|---|
| Agriculture | 3.6 | 3.3 | 2.3 | 3.2 | 1.5 | 4.2 | 4.8* |
| Industry | 7.1 | 6.5 | 9.4 | 7.4 | 3.6 | 5.0 | 12.7* |
| Services | 6.7 | 8.2 | 7.8 | 10.0 | 8.1 | 7.8 | 9.2* |
| Total | 5.6 | 6.4 | 7.8 | 8.2 | 5.6 | 6.6 | 9.4 |
CBSE: Class 12
Maharashtra State Board: Class 9
Maharashtra State Board: Class 9
Criticism
- Developed countries dominate global trade.
- Agricultural subsidies in developed countries continue.
- Developing countries often face unequal market access.
- Some believe WTO-led globalisation reduces the role of governments.
CBSE: Class 12
Maharashtra State Board: Class 9
Tamil Nadu Board of Secondary Education: Class 12
Maharashtra State Board: Class 9
Tamil Nadu Board of Secondary Education: Class 12
Key Points: World Trade Organisation (WTO)
- WTO is the successor to GATT and governs international trade rules.
- Its primary goal is free, fair, and non-discriminatory global trade
- WTO works to reduce tariffs and remove trade barriers among nations.
- Special provisions exist to protect Less Developed Countries (LDCs).
- India is a member and has accepted WTO commitments affecting its economy.
- WTO membership has influenced India's sectors and social indicators.
- It functions through a multilateral conference structure involving all member countries.
