CA Foundation Economics Full Course

Section A: Business Economics

Chapters

Topics

1. Introduction to Business Economics

• Meaning and scope of Business Economics

• Basic Problems of an Economy and Role of Price Mechanism

2. Theory of Demand and Supply

• Meaning and determinants of demand, Law of demand and Elasticity of demand -Price, income and cross elasticity

• Theory of consumer’s behaviour – Marshallian approach and Indifference curve approach

• Meaning and determinants of supply, Law of supply and Elasticity of supply.

• Demand Forecasting

3. Theory of Production and Cost

• Meaning and Factors of production

• Laws of Production – The Law of Variable proportions and Laws of Returns to Scale, Producer’s equilibrium

• Concepts of Costs- Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.

4. Price Determination in Different Markets

• Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition Oligopoly

• Price determination in these markets.

5. Business Cycles

• Meaning

• Phases

• Features

• Causes behind these Cycles

Section B: Business and Commercial Knowledge

1. Business and Commercial Knowledge – An Introduction

• Nature of Business

• Profession and Employment.

• Objectives of Business

• Economic and Non-Economic Activities

• Forms of Business Organizations.

2. Business Environment

• Micro and Macro Environment

• Elements of Micro Environment – Consumers/Customers, Competitors, Organization, Market, suppliers, Intermediaries

• Elements of Macro Environment – Demographic, Economic, Political-legal, Socio-cultural, Technological, Global Environment.

3. Business Organizations

Overview of selected Indian and Global Companies.

4. Government Policies for Business Growth

• Policies creating a conducive business environment such as Liberalization, Privatization,

• Foreign Direct Investment.

5. Organizations Facilitating Business

• Indian Regulatory Bodies – RBI, SEBI, CCI, IRDAI

• Indian Development Banks – IFCI, SIDBI, EXIM Bank, NABARD

6. Common Business Terminologies

• Finance and Stock & Commodity Markets Terminology.

• Marketing Terminology.

• Banking Terminology.

• Other Business Terminology