Maharashtra PSC: Economics : Revised Syllabus for State Services (Main) Examination (Optional)

Economics (Code No : 201) Paper - I
Standard : Degree

Total Marks : 200
Nature of Paper : Conventional Type
Duration : 3 Hours

Note :
1) Answers to this paper must be written either in English or in Marathi.
2) This paper will test the candidate’s ability to comprehend, to analyse, to interpret, to criticise and to appraise subject matter related to the topics/sub topics mentioned below.
3) It is expected from candidates to study the latest and recent developments and happenings pertaining to the topics/sub topics mentioned below.
 

Section - A ( Marks 50 )
1) Micro - Economics :
    1) Marshallian and Hicksian approaches of demand analysis.
    2) Production function - law of variable proportion - economies of scale.
    3) Traditional and modern theories of costs; empirical evidences. - price determination in perfect competition, monopoly and monopolistic competition.
    4) Theories of distribution : rent, wages, interest and profit.
    5) Classical and modern welfare economics - social welfare function - compensation principle - problems in measuring welfare.
    6) Measures of central tendency : mean, mode and median- standard deviation - correlation.
 

Section – B ( Marks 50 )
2) Macro Economics :
    1) Methods of national income accounting.
    2) Functions of money - base money - high-power money - quantity theory of money - money multiplier.
    3)Monetary and non-monetary theories of inflation - control of inflation: monetary, fiscal and direct measures.
    4) Say’s law of market - Keynesian theory of employment - investment multiplier - marginal efficiency of capital.
    5) Theories of business cycle : Hicks, Kaldor and Samuelson
    6) IS-LM Model -Mundell - Fleming model.
 

Section – C ( Marks 50 )
3) Public Finance and Financial Institutions :
    1) Role of public finance in market economy - Criteria for public investment
    2) Merit goods and public goods-sources of revenue and expenditure (Centre and State) - forms of taxes and subsidies and their incidence and effects.
    3) Zero-base budgeting - types of budget deficits - internal and external borrowings.
    4) Financial markets : money market, capital market, discounting house - financial instruments.
    5) Central banking - functions and credit control measures.
    6) Financial sector reforms - new trends in banking - real and nominal interest rates - repo and reverse repo transactions.
 

Section - D ( Marks 50 )
4) Growth, Development and International Economics :
    1) Indicators of development - sustainable development - development and environment - Green GDP.

    2) Classical theories of development – contributions of Adam Smith, Ricardo, Malthus and Karl Marx – Neo-classical growth theories – Solow, Meade, Mrs. Joan Robinson.

    3) Factors of economic development : natural resource, population, human capital, infrastructure - theory of demographic transition- Human development index - human poverty index – gender empowerment measure

    4) Role of foreign capital and technology in growth - multi-national corporations.
    5) International trade as an engine of growth - theories of international trade : Ricardo, Heberler, Heckscher-Ohlin.
    6) IMF-IBRD-WTO - Regional Trade Agreements - SAARC - ASEAN.
 

Paper - II
Standard : Degree

Total Marks : 200
Nature of Paper : Conventional Type
Duration : 3 Hours

Note :
1) Answers to this paper must be written either in English or in Marathi.
2) This paper will test the candidate’s ability to comprehend, to analyse, to interpret, to criticise and to appraise subject matter related to the topics/sub topics mentioned below.
3) It is expected from candidates to study the latest and recent developments and happenings pertaining to the topics/sub topics mentioned below.

Section - A ( Marks 50 )
1) Indian Economy (General Issues) :
    1) Evolution of Indian economy till independence - colonial economics - drain of wealth controversy - Swadeshi Movement - Gandhi and Hind Swaraj.
    2) Contributions of C.N. Vakil, M.G. Ranade, D.R.Gadgil, B.R.Ambedkar and Amartya Sen to Indian economics.
    3) Measurement and estimate of poverty - poverty eradication measures – fertility, nuptiality, mortality and morbidity in India - gender empowerment policies.
    4) Factors determining employment - measures of unemployment - relation between income, poverty and employment - issues of distributional and social justice.
    5) Economy of Maharashtra : salient features of agriculture, industry and service sectors - drought management in Maharashtra - FDI in Maharashtra.
    6) Review, reforms and prospects of cooperative movement in Maharashtra – Alternative policy initiatives in agricultural marketing- Employment Guarantee Scheme.
 

Section – B ( Marks 50 )
2) Indian Agriculture, Rural Development and Cooperation :
    1) Role of agriculture in economic development - interrelationship between agriculture, industry and services sectors - contract farming - precision farming – corporate farming – organic farming.

    2) Size of land holding and productivity - Green Revolution and technological change - agricultural prices and terms of trade - farm subsidies – Public Distribution System - food security.

    3) Regional disparities in agricultural growth in India – agri-business and global marketing - agricultural credit in India.

    4) Sources of irrigation and water management - live-stock resource and their productivity - White Revolution, fisheries, poultry, forestry, horticulture and floriculture development in India and Maharashtra.

    5) Strategies of rural development during the plan period - rural infrastructure (social and economic)
    6) W.T.O. and agriculture - Farmer’s and Breeder’s Rights - biodiversity - GM technology.
 

Section – C ( Marks 50 )
3) Indian Industry, Infrastructure and Services Sector :
    1) Trends, composition and growth of industries, infrastructure and services sector in India - role of public, private and cooperative sectors in India - small and cottage industries.

    2) Liberalisation and its effects on Indian industries - industrial sickness.
    3) Strategies of industrial growth, agro industries and industrial finance in India and Maharashtra.
    4) Monetary institutions in India - factors determining demand for and supply of money- Information Technology application in finance and commerce.
    5) Modes of transport : rail, road, water and air transport in India.
    6) Child labour in India - child and women development measures in India - economic status of women and its impact on work participation rate.
 

Section – D ( Marks 50 )
4) Indian Planning, Foreign Trade and Public Finance :
    1) Objectives, strategies, achievements and failures of Indian planning.
    2) Relation between market and plan strategies for growth - social justice and Plans - capital output ratio.
    3)Role of Planning Commission and NDC - State Planning Boards - Statutory Development Boards in Maharashtra.

    4) Composition and direction of India’s foreign trade - balance of payment - exchange rate – convertibility of rupee - devaluation and its effects on balance of payments - import substitution and export promotion - role of EXIM bank – impact of liberalisation on India’s foreign trade.

    5) Finances of Panchayat Raj Institutions in Maharashtra - role of decentralised and micro-level planning in India.
    6) Merits and demerits of value-added-tax - ways and means advances to the states. – fiscal crisis and management.