CMA Foundation FUNDAMENTAL OF ECONOMICS

Section A: Fundamentals of Economics (50%)

1. Basic concepts of Economics

• The Fundamentals of Economics

• Utility, Wealth, Production

• Theory of Demand (determinants of demand, the law of demand, the elasticity of demand-price, income and cross elasticity) and Supply (determinants, the law of supply and elasticity of supply)

• Equilibrium

• Theory of Production (factors, laws of production-law of variable proportion, laws of returns to scale)

• Cost of Production (the concept of costs, short-run and long-run costs, average and

marginal costs, total, fixed and variable costs)

20%

2. Forms of Market

• Pricing strategies in various forms of markets

20%

3. Money and Banking

• Definition of Money, Types, Features and Functions

• Definition, functions, utility, principles of Banking

• Commercial Banks, Central Bank

• Measures of credit control and Money Market

10%

Section B: Fundamentals of Management (50%)

4. Management Process

• Introduction, planning, organizing, staffing, leading control, communication, coordination

• Concept of power, authority, a delegation of authority, responsibility, accountability

• Leadership & Motivation

• Decision-making – types of decisions, decision- making process.

50%