Madhya Pradesh Public Service Commission
Syllabus For Economics Preliminary Examination (Optional)

ECONOMICS (CODE NO. 13 )

PART - I

1. National Income
Concept and measurement, Human development index, Gross and Net national product, National Income at constant and current prices, National Income and welfare Gross national Product, concept of green revolution.

2. Consumer behavior
Economic choice, law of demand, Elasticity of demand, Utility analysis and indifference curve techniques, consumer equilibrium.

3. Price Theory
Laws of Return, Cost curves and their relationships, Equilibrium of a firm under different market conditions, Pricing of factors of production (modern theories).

4. Money and Banking
Definition and functions of money, value of money, Quantity theory of money, Inflation and Deflation, Measurement of inflation, Monetary Policy objectives and Instruments, Types of Banks and their functions.

5. International Trade
The theory of Comparative Cost, Balance of payment and adjustment mechanism, Problems of Trade Liberalization and W.T.O. , Exchange rate management.

PART-II

Economic Growth and Development
Measurement and determinants, Characteristics of developing economy, Theories and Models of economic development and growth - Classical, Balanced and unbalanced, growth model Harrod - Domer and Mahalnobis model Environmental implications of development, Limits of growth and sustainable development.

PART-III

Indian Economy
Trends of India's population since 1951, Development and problems in Indian agriculture since independence specially with regard to food grains production and land reforms. Industrial policy and industrial development in India, Planning in India - objectives, strategy and Rate of growth, Achievements and failures of planning in India, Deficit financing and India's development plans, Economic Reforms and Social Justice, Problems of Economic Development - Poverty, Unemployment, Inequality, Parallel economy, Infrastructure, Social sector.