PAPER 4: BUSINESS ECONOMICS (100 MARKS)
Syllabus
1. Introduction to Business Economics: Meaning and scope of Business Economics. Basic Problems of an Economy and Role of Price Mechanism.
2. Theory of Demand and Supply Meaning and Determinants of Demand, Law of Demand and Elasticity of Demand – Price, Income and Cross Elasticity.
3. Theory of Consumer’s Behaviour –Indifference Curve approach. Meaning and Determinants of Supply, Law of Supply and Elasticity of Supply, Market Equilibrium and Social Efficiency.
4. Theory of Production and Cost Meaning and Factors of Production, Short Run and Long Run. Law of Production – The Law of Variable Proportions and Laws of Returns to Scale, Producer’s Equilibrium. Concepts of Costs – Short-run and long-run costs, Average and Marginal Costs, Total, Fixed and Variable Costs.
5. Price Determination in Different Markets Market Structures: Perfect Competition, Monopoly and Monopolistic Competition. Using Game Theory to study Oligopoly. Price Determination in these Markets. Price- Output Determination under different Market Forms.
6. Determination of National Income
7. Macro Economic Aggregates and Measurement of National Income.
8. Determination of National Income: Keynes’ Two Sector Basic Model, Three Sectors and Four Sectors Models.
9. Business Cycles
- Meaning
- Phases
- Features
- Causes behind these Cycles
Important Chapters in CA Foundation Economics:Â https://capreetiaggarwal.com/important-chapters-of-ca-foundation-economics-icai-new-syllabus/
