SKUCET2015: SYLLABUS

TEST No-08: ECONOMICS

SECTION - A
PAPER -I MICRO ECONOMICS
1. Introduction
Definitions and scope of economics, Micro macro-economics, statics and dynamics, inductive and deductive
analysis, partial and general equilibrum, Choice as an economic problem.
2. Consumers Behaviour: Cardinal and ordinal utility approaches, Law of Diminishing marginal utility, Law Of
Equi-marginal utility, Indifference curve: Consumers equilibrium (Hicks and Slutsky); Giffins goods, demand
analysis, Elasticity of demand-Price, Income and cross elasticities: consumers surplus; Engel curve.
3. Theory of Production and Costs: Production function; Isoquant; Factor substituion; Law of variable
proportions, Returns to scale; Economics of scale; Different concepts of costs and their interrelation;
Equilibrium of the firm; Expansion path.
4. Market Structure: Perfect and imperfect markets; Equilibrium of a firm-Perfect competition, Monopoly
and price discrimination, Monopolistic competition, Duopoly (Cournots model), Oligopoly (kinky demand
curve), controlled and administered prices.
5. Factor Pricing: Marginal Productivity theory of distribution Wages and collective bargaining: Wage
differentials; Rent-Scarcityrent; Differential rent; Quasi rent; Interest-Classical, Neo-classical and Keynesian
theories; Profits - Innovation, risk and uncertainty theories.
Basic Reading List:
1. A.Koutsoyiannis : Modern Microeconomics, Macmillan
2. Stonier, A.W. and D.C.Hague : A text book of Economic Theory, ELBS & Longman Group,
London.
3. H.L. Ahuja : Advanced Theory
4. H.S. Agarwal : Principles of Economics
5. Heathfield and Wibe : An introduction to Cost and Production Functions,
Macmillan, London.
6. P.N. Chopra : Basic Economics
SECTION B
PAPER-Il: MACRO ECONOMICS
1. National Income and Social Accounts: Meaning, definition and importance of macro economics, concepts
and measurement of national income : Limitations of national income, income as an indicator of economic
welfare, Circular flow of Income, Social accounting.
2. Theories of Output and Employment: Says Law of Markets and classical theory of employment; Keynes
objection to classical theory, Aggregate demand and Aggregate supply functions; The Principle of effective
demand - Average and Marginal propensity to consume; Factors influencing consumption spending; the
investment multiplier. Theory of investment - Autonomous and induced investment; Marginal efficiency of
capital; Phases of trade cycle.
3. Money: Meaning, function and classification of money; Greshams Law; Role of Money in capitalist,
Socialist and mixed economies; Budgets and money supply, money supply in an open economy, control of
money supply.
4. Quantity Theories of Money: Quantity theory of money - Transactions and cash balance approaches; The
Keynesian approach; Definition, types, causes and effects of inflation; Demand pull and cost - push inflation;
measures to control inflation.
5. Banking: Types of commercial banks; Functions of commercial banks; the process of credit, purpose and
limitations; Liabilities and assets of commercial banks; Functions of the Reserve Bank of India; Quantitative
and qualitative methods of credit control.
Basic Reading List:
1. Dillard, D. : The Economics of John Maynard Keynes, Cross by Lockwood and sons, London
2. Vaish, M.C. : Macro Economic Theory
3. Gupta, S.B.: Monetary Economics, S. Chand & Co., Delhi.
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4. Mithani, D.M. : Macro Economic Analysis and Policy, Oxford and JBH, New Delhi.
5. Mishra, 5.5. : Money Inflation and Economic Growth, Oxford and IBH Publishing Company, New
Delhi.
6. Lewis, M.K.& Mizan, P.D.: Monetary Economics, Oxford University Press, New Delhi.
SECTION C
PAPER-Ill: INDIAN ECONOMY
Module 1: Concepts of Development: Meaning and definition growth and development - Measures of
economic development - GNP, PCI, PQLl and HDI. Factors influencing Economic development - Sustainable
development - Balanced and unbalanced growth Choice of Techniques Labor intensive and capital
intensive methods.
Module 2: Structure of the Indian Economy: Basic features - Natural resources- Land, Water and Forest
resources; Broad demographic features - Size and growth of the population - Age and sex composition -
Rural and Urban population - Occupational distribution - Population Policy. National Income in India
Trends and composition Poverty, Inequalities and unemployment - Causes and consequences, Current Five
Year Plan - Objectives, Mobilization and Allocation of Resources - New Economic Reforms - Liberalization,
Privatization and Globalisation in India Inclusive Growth.
Module 3: Indian Agriculture: Nature and Importance; Trends in agricultural production and productivity;
Factors determining productivity, Rural Credit Micro Finance and Self Help Groups (SHGs). Agricultural
price policy, Crop insurance, Agricultural Infrastructure and Food security.
Module 4: Indian Industry and Services: Structure and growth of Indian Industry Industrial Policies of 1956
and 1991. Growth and Problems of small scale industries. Foreign Exchange Management Act (FEMA);
Disinvestment policy in India Foreign Direct Investment Growing importance of Service Sector in India
Banking, Insurance, Information Technology, Education and Health.
Module 5: Andhra Pradesh state Economy: GSDP Sectoral Contribution and Trends; Human Resources
Population Trends, Regional differentials Demographic Dividend; Agricultural Sector Land use and
Cropping pattern; Industrial Sector Small Scale industries, Investment and employment in industrial sector,
SEZs; Service Sector Growth of income and employment in the servie sector, Information Technology (IT).

REFERENCES :
1. Dhingra, l.C. : Indian Economy , Sultan Chand, 2007.
2. Dutt, Ruddar and Sundaram K.P.M. Indian Economy S. Chand & Co., 2008.
3. G.M.Meier : Leading issues in Economic Development, Oxford University Press, New York, 3/e.
4. M.P.Todaro Economic Development, Longman, London, 6/e, 1996.
5. Reserve Bank of India Handbook of Statistics on Indian Economy (Latest).
6. S.K.Misra & V.K.Puri Indian Economy, Himalaya Publishing House, 2006.
7. R.S.Rao, V.Hanumantha Rao & N.Venu Gopal (Ed.) Fifty Years of Andhra Pradesh (1956-2006), centre for
Documentation, Research and Communications, Hyderabad, 2007.
8. Telugu Academy Publications.
9. United Nations, World Development Report, Oxford, 1990-2008, Different editions.
10. AUSDE Study Material.
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