Economics Optional Coaching & Test Series

Economics OPTIONAL SUBJECT ONLINE COURSE BY CHAHAL ACADEMY

This course has been specially designed for those who are -

• Interested in opting for Economics as optional with or without an academic background in Economics.
• Facing problems in correlating and connecting theories and concepts.
• Studied the subject on their own and faced problem in writing standard answers.
• Facing challenges in unfolding their knowledge to clear basic notions and theories.

ANSWER WRITING IN Economics

• While writing Economics optional paper, candidates must keep in mind that their answers for Economics should look different from the GS answers.
• Economists’ views, data, facts figures & technical words can be added to the optional subject to score well.
• Interlink topics from Paper-I with paper-II to enrich your answers further. Take up actual case studies to substantiate your answer. If you can find relevant cases from current affairs, that can fetch you extra points.

PAPER – I Economics Optional Syllabus

Advanced Micro Economics

• Marshallian and Walrasian Approach to Price determination.
• Alternative Distribution Theories → Ricardo, Kaldor, Kaleeki.
• Markets Structure → Monopolistic Competition, Duopoly, Oligopoly.
• Modern Welfare Criteria → Pareto Hicks & Scitovsky, Arrow’s Impossibility Theorem, A.K. Sen’s Social Welfare Function.

Advanced Macro Economics

• Approaches to Employment Income and Interest Rate determination
• Classical, Keynes (IS-LM) curve
• Neoclassical synthesis and New classical
• Theories of Interest Rate determination and Interest Rate Structure.

Money – Banking and Finance

• Demand for and Supply of Money
• Money Multiplier Quantity Theory of Money (Fisher, Pique and Friedman)
• Keyne’s Theory on Demand for Money
• Goals and Instruments of Monetary Management in Closed and Open Economies
• Relation between the Central Bank and the Treasury
• Proposal for ceiling on growth rate of money
• Public Finance and its Role in Market Economy
• In stabilization of supply, allocation of resources and distribution and development
• Sources of Govt. revenue, forms of Taxes and Subsidies, their incidence and effects
• Limits to taxation, loans, crowding-out effects and limits to borrowings. Public Expenditure and its effects

International Economics

• Old and New Theories of International Trade
• Comparative Advantage
• Terms of Trade and Offer Curve
• Product Cycle and Strategic Trade Theories
• Trade as an engine of growth and theories of underdevelopment in an open economy
• Forms of Protection → Tariff and quota
• Balance of Payments Adjustments → Alternative Approaches.
• Price versus income, income adjustments under fixed exchange rates
• Theories of Policy Mix
• Exchange rate adjustments under capital mobility
• Floating Rates and their Implications for Developing Countries → Currency Boards
• Trade Policy and Developing Countries
• BOP, adjustments and Policy Coordination in open economy macro-model
• Speculative attacks
• Trade Blocks and Monetary Unions
• WTO → TRIMS, TRIPS, Domestic Measures, Different Rounds of WTO talks

Growth and Development

• Theories of growth
• Harrod’s model,
• Lewis model of development with surplus labour
• Balanced and Unbalanced growth,
• Human Capital and Economic Growth.
• Research and Development and Economic Growth
• Process of Economic Development of Less developed countries
• Myrdal and Kuznets on economic development and structural change
• Role of Agriculture in Economic Development of less developed countries.
• Economic development and International Trade and Investment, Role of Multinationals
• Planning and Economic Development → changing role of Markets and Planning, Private- Public Partnership.
• Welfare indicators and measures of growth – Human Development Indices. The basic needs approach.
• Development and Environmental Sustainability – Renewable and Non-Renewable Resources, Environmental Degradation, Intergenerational equity development.