Economics II (Economic Theory II)

Unit 1 — Market

Perfect Competition, Monopoly: Features and Equilibrium output and Price determination

• Market structure — Features of Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly

Unit 2 — Input Market

Labour Market and Liquidity Preference Theory, Profit

Unit 3 — Public Finance I

Public finance vs Private finance, Sources of Government Revenue, Types of Taxes: Direct & Indirect Tax · Progressive, Regressive and Proportional Tax, Principles of Taxation: Benefit and Ability to pay Approach, Public Expenditure

• Indian Tax Structure — Direct and Indirect Taxes
• Sources of Public Revenue
• Public Expenditure — Classification and Causes of growth of Public Expenditure

Unit 4 — Public Finance II

Public Debt and burden of Public Debt, Government Budget, Federal Finance, Fiscal Policy

• Intergovernmental Fiscal Relations in India — Centre — State Fiscal Relationship and Finance Commission

Unit 5 — International Trade

Difference between Internal trade and International trade, Concept of Absolute Advantage and Comparative advantage, Gains from trade, Free trade and Protection, Concepts of Tariff and Quota, Basic ideas about Trade Liberalization, Bilateral Trade Agreements, Regional Trade Agreements

Unit 6 — Balance of Payments and Exchange Rate

Concepts of BOP, BOT, Current Account, Capital Account, Autonomous and Accommodating Transactions, Causes and Solutions of BOP disequilibrium, Basic concepts of Exchange rates

• Balance of Payments — Structure and Disequilibrium

Unit 7 — Basic Concepts of Development

Growth and Development, Broad indicators of development, -Per Capita Income, Inequality, Poverty and Gini Coefficient, Unemployment, Gender Inequality · Human Development Index

Unit 8 — Theories of Economic Development with reference to Indian Economy

Vicious circle of Poverty, low level equilibrium trap and Critical Minimum Effort thesis, balanced growth, and unbalanced Growth