Economics XII

Unit 1: Market Economy, Demand, Supply, Equilibrium of Demand Supply

Market Economy

• Concept of market economy
• Features of market economy

Demand

• Meaning of Bank
• Meaning of Demand
• Law of Demand
• Types of Demand
• Determinants of demand
• Demand curve
• Movement Along Demand Curve

Supply

• Supply
• Determinants of supply
• Supply Curve
• Law of Supply
• Movement Along Supply Curve

Equilibrium

• Equilibrium

Unit 2: Elasticity of Demand

General

• Economics XII: Meaning

Types of elasticity of demand

• Price elasticity of demand
• Perfectly elastic demand
• Perfectly inelastic demand
• Relatively elastic demand
• Relatively inelastic demand
• Unitary elastic demand
• Income Elasticity of demand
• Income elasticity of demand greater than one
• Income elasticity of demand less than one
• Income elasticity of demand equal to one
• Zero income elasticity of demand
• Negative income elasticity of demand
• Cross elasticity of demand
• Positive cross elasticity of substitute goods
• Negative cross elasticity of demand
• Measurement of price elasticity of demand by total outlay method
• Factors determining the elasticity of Demand

Unit 3: Theory of Consumers Behavior

Topics

• Utility
• Concepts of Utility
• The Law of diminishing marginal utility
• Limitation of diminishing marginal utility
• Importance of the law of diminishing marginal utility
• The law of maximum satisfaction/ The law of equi-marginal utility/ The law of substitution
• Exceptions/ Limitations of the law of substitution
• Consumer Surplus
• Criticism of Consumers’ Surplus
• Importance of concept of Consumers’ Surplus

Unit 4: Factors of Production

Topics

• Factors of production
• Land
• Labor
• Labor division
• Malthusian theory of population
• Stages of population
• Change in Optimum Population
• Limitations (Criticisms) of Optimum Theory
• Capital
• Organization
• Sole trading concern
• Partnership firm
• Joint Stock Company

Unit 5: Theory of Production

Topics

• Economics XII: Meaning in Factor Prices
• Concept of production
• Law of variable production
• Application of Law of diminishing return especially in agriculture
• The Laws of returns to scale

Unit 6: Revenue and Cost Curves

Revenue

• Economics XII: Meaning of Cost
• Concept of revenue
• Derivation of TR, AR and MR curves under the perfect competition market

Cost

• Economics XII: Meaning of Revenue
• Difference between fixed and variable cost
• Concept of short run cost
• Concept of short-run total cost curves
• Derivation of TR, AR and MR curves under monopoly market
• Concepts of short run average cost
• Marginal Cost (MC)
• Relationship between MC and AC
• Long Run Cost
• Theory of product pricing
• Perfect Competition Market
• Monopoly Market

Unit 7: Theory of Price and Output Determination

Unit 8: Theory of Factor Pricing

Topics

• Meaning of Production
• Rent
• Wage
• Subsistence theory of wage
• Wage fund theory of wage
• Interest
• Demand for capital
• Supply of capital
• Profit
• Risk theory of profit
• Uncertainty theory of profit

Unit 9: Money

Topics

• Barter system
• Definition of money
• Types of money
• Value of money
• Quantity theory of money
• Inflation
• Deflation
• Price index number
• Procedure of construction of price index
• Simple price index number
• Weighted price index

Unit 10: Banking

Topics

• Economics XII: Meaning
• Types of Bank
• Role of Bank
• Role of Central Bank with special reference to the Nepal Rastra Bank
• Functions of commercial banks
• Concept of money market
• Concept of capital market
• Difference between Money and Capital Market

Unit 11: Government Finance

Unit 12: International Trade

Topics

• Meaning of international trade
• Role of international trade
• Balance of trade
• Balance of payment
• Free trade
• Protectionism
• Comparative cost theory of international trade
• World trade organization (WTO)
• South Asian free trade agreement