Thursday, July 04, 2013

Paper 1: Fundamentals of Economics and Management

Section A: Fundamentals of Economics [ 50 marks]
1. Basic Concepts of Economics
(a) The Fundamentals of Economics & Economic Organizations
(b) Utility, Wealth, Production, Capital
(c) Central Problems of an Economy
(d) Production Possibility Curve ( or Transformation Curve)
(e) Theory of Demand ( meaning, determinants of demand, law of demand, elasticity of demand- price, income and cross elasticity) and Supply ( meaning , determinants, law of supply and elasticity of supply)
(f) Equilibrium
(g) Theory of Production ( meaning , factors, laws of production- law of variable proportion, laws of returns to scale)
(h) Cost of Production ( concept of costs, short-run and long-run costs, average and marginal costs, total, fixed and variable costs)

2. Forms of Market
(a) Various forms of market- monopoly, perfect competition, monopolistic competition, oligopoly, duopoly
(b) Pricing strategies in various markets

3. National Income
(a) Gross National Product
(b) Net National Product
(c) Measurement of National Income
(d) Economic growth and fluctuations
(e) Consumptions, Savings and Investment

4. Money
(a) Definition and functions of money
(b) Quantity theory of money
(c) Inflation and effect of inflation on production and distribution of wealth
(d) Control of Inflation
(e) Money Supply
(f) Liquidity preference and marginal efficiency
(g) Rate of Interest and Investment

5. Banking
(a) Definition
(b) Functions and utility of Banking
(c) Principles of Commercial Banking
(d) Essentials of sound Banking system
(e) Multiple credit creation
(f) Functions of Central Bank
(g) Measures of credit control and Money Market
(h) National & International Financial Institutions

6. (A) Indian Economy – An overview Nature, key sectors and their contribution to the economy
(a) Meaning of an Underdeveloped Economy
(b) Basic Characteristics of the Indian Economy
(c) Major Issues of Development
(d) Natural resources in the process of Economic Development
(e) Resources - land; forest; water, fisheries, minerals
(f) Economic development and Environmental Degradation
(g) Global Climate Change and India
(h) The role of Industrialization, pattern of Ownership of Industries Role and Contribution of Industries in Economic development (with special reference to the following industries): Iron and Steel, Cotton and Synthetic Textile, Jute, Sugar, Cement, Paper, Petrochemical, Automobile, IT & ITES, Banking and Insurance

(B) Infrastructure of the Indian Economy
(i) Infrastructure and Economic Development, Private Investment in Infrastructure, Public Private Partnership (PPP) Model in Infrastructure Energy
(ii) Power Sector
(iii) Transport System in India’s Economic Development – Railways, Roads, Water, Civil Aviation
(iv) Information Technology (IT) and ITES (Information Technology Enabled Services) including the Communication System in India
(v) Urban Infrastructure
(vi) Science and Technology

Section B – Fundamentals of Management [50 marks]
7.  (a) Management Process – introduction, planning, organizing, staffing, leading, control, communication, co-ordination.
(b) Evolution of Management thought – Classical, Neo-classical, Modern

8.  (a) Concept of Power, Authority, Responsibility, Accountability, Delegation of Authority, Centralization & Decentralization
(b) Leadership & Motivation – Concept & Theories

9.    (a)Group Dynamics- concept of group and team, group formation, group cohesiveness
(b) Management of organizational conflicts- reasons, strategies

10.  Decision-making- types of decisions, decision-making process.