NTRCA college written syllabus

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Micro Economics  
1.  Introduction: Definition, nature and scope of Economics , Micro Economics and 
Macro Economics. Positive Vs. Normative Economics. The basic problems of 
Economic organization. Production and exchange. Production possibility frontier. The 
market mechanism.  
2. Supply and Demand: Concept of supply and demand and the ir determinants. Market 
equilibrium and shifts of market equilibrium. Consumer's and producer's surplus. 
Concepts and measurements of various elasticity of demand and supply. 
3. The Theory of Consumer Behavior: Utility-total and marginal utility, cardinal and 
ordinal utility. Law of diminishing marginal utility. Equimarginal principle and 
derivation of demand curves.  
4. Theory of production: Production function. Fixed Vs. variable factors of production. 
Short run and long run, total, average and marginal pr oduct. The law of diminishing 
returns; Returns to scale, technological change.  
5. Theory of Cost and Revenues: Short and long run cost functions. Implicit and 
opportunity cost. Fixed and variable costs. Total, average and marginal cost. Envelope 
curves. Th e link between production and economic profit. Profit maximizing 
conditions.  
6.  Market: Perfect competition and monopoly, short and long run equilibrium of firm 
and industry, Profit maximization, Shut down condition, Resource allocation and 
economic effic iency.  
Macro Economics  
1. Macro Economics Overview: Objective and instrument of macroeconomics. 
Fundamental concepts of macroeconomics. Potential GNP. GNP gap, Okun's law, 
natural rate of unemployment. Business cycles. Budget deficit and international 
deficit, aggregate demand and aggregate supply.  
2. National Income Accounting: Circular flow of income. Injections and leakages, 
Different concepts of national income -GNP, GDP, NNP, NI at factor price, market 
price and constant price, personal income, disposa ble income, real and national GDP. 
Net Economic Welfare (NEW): The Consumer Price Index (CPI) & the GDP Deflator. 
The methods and problems of computing national income.  
3. Consumption and Saving Function: Concepts of MPC, APC. MPS, APS. Short run 
and long run view kuznet's Puzzle.  
4.  Inflation: Measures of inflation, causes of crutlation, source of inflationary pressure, 
consequences of inflation, deflation.  
5. Money and Monetary Policy : Meaning of money, different concepts of money (M1. 
M2. M3), credit c reation by banking system, function of money, demand and supply 
of money, velocity of money, long run impact of money on prices, short run impact of 
money on output, changes in income velocity, monetary policy.  
6. Fiscal Policy: Theory of fiscal policy, r elationship of fiscal policy to monetary policy. 
problems in implementing fiscal policy.