
Himachal Pradesh Public Service Commission
SET: Economics (Code-19)
PAPER-II
1. Micro-economic Analysis Demand analysis-Marshallian, Hicksian and
Revealed preference approaches Theory of Producion and Costs Pricing and output
under different forms of market structure Factor Pricing analysis Elements of
general equilibrium and new welfare economics
2. Macro-economic Analysis Determination of output and
employment-Classical approach, Keynesian approach, Consumption hypotheses Demand
for Money-Fisher and Cambridge versions, Approaches of keynesian, Friendman,
Patinkin, Baumol and Tobin Supply of Money, Determinants of money supply,
High-powered money, Money multiplier.
Phillips Curve analysis Business cycles- Models of samuelson, Hicks and
Kaldor. Macroeconomic Equilibrium-Relative roles of monetary and fiscal
policies.
3. Development and Planning:
Economic Growth, Economic Development and sustainable Development-Importance
of institutions-Government and markets- Perpetuation of underdevelopment-Vicious
circle of poverty, circular causation, structural view of underdevelopment-
Measurement of development, conventional, HDI and quality of life indices.
Theories of Development-Classical, Marx and Schumpeter; Economic Growth-Harrod-
Domar model, instability of equilibrium, Neoclassical growth-Solow's model,
steady state growth. Approaches to development : Balanced growth, critical
minimum effort, big push, unlimited supply of labour, unbalanced growth, low
income equilibrium trap.