CUET Economics

Course I: Introductory Microeconomics - Unit I: Introduction, Theory of Consumer Behaviour

• What is microeconomics?
• Central problems of an economy
• Consumer’s Equilibrium: meaning and attainment of equilibrium through Utility Approach: One and two commodity cases, Consumers Budget and Optimal choice of the consumer.
• Demand: market demand, determinants of demand, demand schedule, demand curve, movement along and shifts in the demand curve, price elasticity of demand, measurement of price elasticity of demand – percentage, total expenditure, factor determining price elasticity of demand for a good.

Note for Students: This unit covers the foundational concepts of individual economic decision-making and the mechanics of consumer demand.

Course I: Introductory Microeconomics - Unit II: Production and Costs

• Production function: Short run and Long run production function
• Shapes of TP, MP and AP curves
• Cost and Revenue: Concepts of costs; short-run cost curves (fixed and variable costs; total, average and marginal costs); concepts of revenue – total, average and marginal revenue and their relationship.
• Producer’s equilibrium – with the help of MC and MR.

Note for Students: Focus on understanding how firms manage production inputs and costs to reach an optimal equilibrium point.

Course I: Introductory Microeconomics - Unit III: The Theory of the firms under perfect competition

• Features of perfect competition
• Profit maximization.
• Price determination under perfect competition – equilibrium price, effects of shifts in demand and supply.
• Supply: market supply, determinants of supply, supply schedule, supply curve movement along and shifts in supply curve, price elasticity of supply, measurement of price elasticity of supply.

Note for Students: This section analyzes firm behavior and price discovery within a perfectly competitive market structure.

Course I: Introductory Microeconomics - Unit IV: Market Equilibrium and Simple Applications

• Market equilibrium, excess demand, excess supply,
• Applications: Price ceiling and Price flooring.

Note for Students: Study how markets reach balance and the impact of government interventions like price controls.

Course II: Introductory Macroeconomics - Unit I: Introduction and National Income Accounting

• What is macroeconomics?
• Basic concepts in macroeconomics: Circular flow of income; Methods of calculating National Income - Value Added or Product method, Expenditure method, Income method
• Aggregates related to National Income: Factor Cost, Basic Prices and Market Price. GDP and Welfare

Note for Students: Understand the broad economic indicators and different methodologies used to measure a nation's total economic output.

Course II: Introductory Macroeconomics - Unit II: Money and Banking

• Meaning and functions, supply of money - Money Creation and Money Multiplier.
• Central bank and its functions (example of the Reserve Bank of India)
• Policy tools to control money supply.

Note for Students: This unit details the role of money in the economy and the regulatory functions of central banking institutions.

Course II: Introductory Macroeconomics - Unit III: Determination of Income and Employment

• Aggregate demand and its components.
• Determination of Income in two sector model.
• Problems of excess demand and deficient demand; measures to correct them - changes in government spending, taxes and money supply
• Multiplier mechanism.

Note for Students: Explore the Keynesian framework of income determination and how fiscal and monetary policies address economic fluctuations.

Course II: Introductory Macroeconomics - Unit IV: Government Budget and the Economy

• Government budget - meaning, objectives and components
• Classification of receipts - revenue receipts and capital receipts;
• Classification of expenditure – revenue expenditure and capital expenditure.
• Balanced, Surplus and Deficit Budget – measures of government deficit.

Note for Students: Analyze how the government manages public finances and the various types of budgetary balances.

Course II: Introductory Macroeconomics - Unit V: Open Economy Macroeconomics

• Balance of payments account - meaning and components;
• Balance of payments – Surplus and Deficit
• Foreign exchange rate - meaning of fixed and flexible rates and managed floating. Merits and demerits of exchange rate regimes.
• Determination of exchange rate.
• Managed Floating

Note for Students: Study the economic interactions between a country and the rest of the world through trade and exchange rates.

Course III: Indian Economic Development - Unit I: Development Policies and Experience (1947-90)

• A brief introduction of the state of Indian economy on the eve of independence.
• Indian economic system and common goals of Five Year Plans
• Main features, problems and policies of agriculture (institutional aspects and new agricultural strategy), industry (IPR 1956; SSI – role & importance) and foreign trade.

Note for Students: This historical overview tracks India's economic path and planning from independence through the pre-reform era.

Course III: Indian Economic Development - Unit II: Economic Reforms since 1991: Macroeconomics: Meaning

• Economic Reforms since 1991:
• Features and appraisals of liberalisation, globalisation and privatisation (LPG policy);

Note for Students: Evaluate the significant shift in India's economic policy through the 1991 reforms and their lasting impacts.

Course III: Indian Economic Development - Unit III: Current challenges facing the Indian Economy

• Human Capital Formation: How people become resource; Role of human capital in economic development; Growth of Education Sector in India
• Rural development: Key issues - credit and marketing - role of cooperatives; agricultural market system, Agriculture diversification; alternative farming - organic farming
• Employment: Growth and changes in work force participation rate in formal and informal sectors; problems and policies
• Environment and Sustainable Development: Definition and Functions, State of India’s environment, Strategies for sustainable development.

Note for Students: This unit addresses contemporary issues including human resource growth, rural infrastructure, and environmental sustainability.

Course III: Indian Economic Development - Unit IV: Development Experiences of India: A comparison with neighbours

• A comparison with neighbours.
• Issues: economic growth, population, sectoral development and other Human Development Indicators.
• Development Strategies.

Note for Students: Contrast India's development trajectory with neighboring nations to understand regional economic dynamics.