SWAMI RAMANAND TEERTH MARATHAWADA UNIVERSITY, NANDED

PET SYLLABUS AND FORMAT OF ENTRANE TEST IN

ECONOMICS

SECTION -B
I) Micro Economics :-
Definitions - Nature of scope - Micro and Macro Economics - Demand and supply
Theory - Elasticity of Demand - Measurement of elasticity of demand, Indifference curve,
Theory of Production and cost - Market structure - perfect competition - Monopoly and
Monopolistic competition - Theory of Distribution – Rent, wages, Interest and profit ,
Welfare Economics – Pigou’s and Amartya Sen’s Views.

II) Macro Economic :-

Concepts of National Income – GDP, GNP, NNP, per capita income -
Measurement of National Income - Theory of Money – Quantity theory of Money –
Fisher’s and Cambridge Approaches – Theories of demand for Money - Consumption
analysis, Investment Function - Theories of income, output determination IS-LM Model -
Multiplier and Accelerations – Aggregate supply – demand model, Phillips Curve and its
Collapse, Rational expectations theory.
III) Theories of Economic Development :-
Classical Theories – Adam Smith - Ricardo - Malthus, Karl Marks theory of
economic Development - Rostow’s stages of Economic Growth - Lewis theory of
unlimited supplies of labour - Balanced and unbalanced growth, Prebisch – Singer
hypothesis, theory of circular causation, Harrod model, slow’s growth theory.

IV) Economic Thoughts :-

Mercantilism - physiocracy - Neo-classical period – Marshall - Pigou, Economic
thoughts of – Koutilya - Mahatma Phule - Rajarshi Shahu - Dadabhai Naoroji - M G
Ranade - Mahatma Gandhi - Dr. Babasaheb Ambedkar - Y. B. Chavan and Amartya Sen.

V) Indian Economy -
Characteristics of Indian Economy - Agricultural sector in India – Sources of
Agricultural Finance – Issues in Agricultural Marketing - Green Revolution, Agricultural
Performance Since 1991- New Agricultural Strategy – Industrial policies since 1991 –
Performance of international trade – Export – Import Policies - planning in India – 12 th
Five Year Plan - WTO and its effects on Indian economy.

VI) Quantitative Techniques :-

Primary and Secondary Data (census and sampling) Measures of Central Tendency
– Mean, Median, Mode, Measures of Dispersion – Range , Quartile Deviation, mean
deviation, standard deviation, components of time series, measurement of trend – Least
squares Method - Correlation, Regression, Index Numbers - Hypothesis testing - t test.
 Unit- I
Micro-Economics
A) Revealed preference theory – Slutsky Theorem - Compensated demand curve and
Empirical demand function
B) Modern theory of Production and cost- Cobb Douglas production function,
Short run and Long run Average and Marginal cost curves ‘L’ shaped cost curve
C) Market Structure :- Oligopoly Monopolistic Competition, Collusive and non
collusive oligopoly.
D) Managerial Theories :-
Baumol’s sales revenue maximization model – Williamson’s model of managerial
Discretion Morris model of managerial enterprise, Full cost pricing Principle,
Bain’s limit pricing theory, Game theory
E) Distribution :-
Marginal Productivity theory of distribution , Modern theory of Rent, Modern
theory of wages, Liquidity preference, Dynamic and innovation theory of profit –
Eulers Theorem.
F) Welfare Economics :
Pareto’s optional conditions, -Value judgments - Social Welfare Function,
Compensation Principle - Arrow’s Impossibility Theorem

Suggested Readings:
1) Koutsoyiannis, A. : Modern Micro Economics, Macmillan Press, London.
2) Ahuja H. L. : Advanced Economic Theory, S. Chand and Company, Delhi.
 Unit- II
Macro-Economics
A) Post Keynesian Demand for money :-
Approaches of Baumol Tobin, Friedmen and Modern quantity theory - crisis of
keynesian Economics and the rise of monetarism
B) Supply of Money :-
Concept of money supply- RBI’s approaches to money supply - High powered
money and money multiplier, Controls of money supply.
C) Inflation :-
Classical , Keynesian and monetarist approaches to inflation - structuralist theory
of inflation, Money neutrality, policies to control inflation – gradualism Vs gold
turkey, hyperinflation
D) Business cycles :-
Theories of Schumpeter, Kaldor, Samuelson and Hicks, Goodwin’s model, control
of business cycles.

Suggested Readings:
1) Gupta S. B., Monetary Economics, Institutions, Theory and Policy, S. Chand &
Company Ltd., New Delhi.
2) Rudiger Dornbusch, Stanley Fisher, Macroeconomics, Tata Mc Graw– Hill
Publishing Co. Ltd., New Delhi.
 UNIT –III
INDIAN ECONOMY
A) Introduction to Indian Economy :-
Nature of Indian Economy- Major issues in Indian economy; - population -
poverty Unemployment - Regional imbalances and economic inequality
B) Agriculture :- Trends in agricultural production, food security, Agricultural
finance and marketing.
C)Industrial and service Sector :- Industrial policy since 2002 and onwards,
problems of large scale industries , small scale industries – Role, performance and
problems.
Growth of service sector during post economic reforms period.
D)Infrastructure Development in India :- Role of infrastructure in economic
development - Economic infrastructure - transport and communication - Irrigation
and energy and social infrastructure – Education Health and Environment.
E) Indian Planning :- Achievements and failure India’s five year plans, and 12th five
year plan.
F) Economic Reforms and Banking Sector Reforms :- New economic policy
of 1991 and its impact on financial sector, Disinvestment concept-Types and
problems , Banking Sector Reforms- Narsimham Committee
G) Indian Foreign Trade :- Composition and direction of India’s Foreign Trade,
EXIM policy, FEMA, WTO and India, Role of foreign capital and MNCs in India.
Suggested Readings:

1) Kaushik Basu (2007) : “The Oxford companion in India”, Oxford University Press,
New Delhi.

2) S.Sivasubrumanian (2000), “The Nation Income of India in the Twentieth

Century”, Oxford University Press, New Delhi.

3) UNDP, “Human Development report (2007)”, Polgrave Macmillan

4) K. Sundaram (2000), “Employment and Poverty in 1990’s”, Himalaya Publishing

House, Nagpur.

5) Vasant Desai (2005), “A Challenge in the Crisis”, Himalaya Publication House Pvt.
Ltd., Nagpur.

6) Vasant Desai (2009), “Rural Development in India”, III (Ed.) Himalaya Publishing
House, Nagpur.
7) Mishra & Puri (2010), “Indian Economy”, Himalaya Publishing House Gettanjali
Press Pub. Ltd. Nagpur.

Unit -IV
Public Economics
A) Introduction :- Meaning , scope and importance of public Economics, Role
of Government in Mixed economy, concept of public, private and merit goods,
Theories of Public goods, voluntary exchange model, contribution of Samuelson
and Musgrave.
B) Taxation :- Principles of taxation , contribution of Samuelson, Bowen and Lindhal
models - Taxable capacity, impact and incidence, Types of incidence, Theories of
shifting of incidence, Theories of optimal taxation.
C) Public expenditure and debt :- Wagner’s law, Wiseman / peacock hypothesis,
pure theory of public expenditure, cost - benefit Analysis, Growth of public
expenditure in India - Classical , Keynesian and post – Keynesian approaches of
public debt, public debt, Types, Burden , Sources , Management and repayment.
D)Government Budgeting :- Budget meaning , components , preparation,
presentation, Types and execution of budget , Deficit financing – meaning and
types , causes of growing fiscal deficit fiscal policies since 1991.
E) Fiscal Federalism :- Centre- State Finance relations , 13th Finance commission
F) Indian Tax System :- Major taxes in India, Reforms in Direct and indirect
taxation, service taxes –VAT and other recent development

Suggested Readings:
1. Batina and Ihori (2005), “Public Goods : Theories and Evidence”, Springer, New
York
2. Buchanan J.M. (1958), “Public Principles of Public Debt : A Defense and
Restatement”, Richard D Irwin, The Collected Works of J M Buchanan, Vol. 2
3. Buchanan J.M. (1970), “The Public Finances”, Richard D. Irwin, Homewood,
Illinois.
4. Carnes and Sandler (1996), The Theory of Externalities, Cambridge University
Press
Unit- V
International Economics
A) Theories of Trade :- Absolute and comparative advantage theory , modern theory
of international trade, Heckscher Ohlin theory , Edgeworth box diagram, Leontief
Paradox, Terms of trade and commercial policy-concept of terms of trade- Net
Barter and gross Barter terms of Trade, free trade and controls of trade, tariffs and
non-tariff barriers, Stolper Samuelson theorem - International trade - composition
and direction of trade - BOP, causes of disequilibrium in BOP, The process of
adjustment under gold standard, fixed and flexible exchange rates, Bretton Woods
System, SDR’S, Marshall learner elasticity approach, Absorption approach,
monetary approach , internal and external balance, swan model.
B)Regional Trading Blocks :- European Union –ASEAN, NAFTA,
SAFTA,SAARC
C) Trade Policies in India :- Convertibility of rupees on current account, Regulation
of MNC’S in India.

Suggested Readings:
1. Apte P. G. (2003), “International Finance: A Business Perspective”, Tata McGraw
Hill, New Delhi.
2. Bhagwati, J (Ed) (1981), “International Trade: Selected Readings”, Cambridge,
University Press, Massachusetts.
3. Chacholiades, M (1990), “International Trade; Theory and Policy”, McGraw Hill,
Kogakusha, Japan.
4. Goldstein, M. (1998), “The Asian Financial Crisis; Causes, Cure and Systemic
Implications”, Institute for International Economics, Washington. D.C.
5. Solvator, International Economics. -
 Unit –VI
Economics of Growth and Development
A)Growth Models :- Harrold and Domar model , Solow’s model, Mrs. John
Robinson’s Growth model, Growth models of Kaldor and Pasinetti, Ramsay’s rule,
B) Social and Institutional aspects of growth :- Quality of life , food security,
education, health and nutrition, HRD, Theories of population- Demographic
transition.
C)Approaches of Development :- Critical minimum effort thesis, low level
equilibrium trap, Dualism, Ranis and Fei model, Dixit and Marglin models.
D)Macroeconomic policies and Development :- Role of monetary and fiscal
policies in developing countries, external resources. FDI, Aids, Grants and external
commercial borrowing.

Suggested Readings:
1) Thirlwall A.P. (1999) (6th Edition) “Growth and Development”, Macmillan, U.K.
2) Jones H.G. “An Introduction to Modern Theories of Economic Growth”, Economic
Hanel Bank Series, Thomas Nelson and Sons, UK.
3) Basu, Kaushik, 1998, “Analytical Development Economics”, OUP, New Delhi.

Unit – VII
Agricultural Economics
A)Introduction :- Role of Agriculture in Indian Economy, Agricultural
development under five year plan, food grains and major commercial crops
production in India, Indian Agriculture in the context of WTO regime.
B) Agriculture credit :- Co-operative credit system , NABARD, Commercial Banks
and Vaidynathan Committee , Kisan Credit Cards, SHG and Agriculture.
C) Agricultural Marketing and price policy :- Agricultural marketing, problems of
marketing, MSP, PDS.
 D) Sustainable Agricultural Development :- Bio-Technology-meaning and scope,
Horticulture, Second Green Revolution, organic farming- Contract farming, dry
land farming.

Suggested Readings:
1) Bhaduri A. (1984), The Economics of Backward Agriculture, Macmillan, Delhi.
2) Bhalla G.S. (1994) , Economic Liberalization and Indian Agricultural, Institute for
studies in Industrial Development, New Delhi.
3) Bilgrami, S.A.R. (1996), Agricultural Economics, Himalaya Publishing House, Delhi.
4) Choudhary P. (1972), Reading in Indian Agriculture Development, George
Allen & Unwin, Landon.
5) Desai R. G. (2006), Agricultural Economics( Models, Problems and Policy Issues),
Himalaya Publishing House, Delhi

Unit-VIII
Statistical Methods

A) Introduction and Data collection :- Meaning, scope, importance and limitations

of statistics, Data – meaning and types, methods of data collection, census and
sample survey, types of sampling.
B) Presentation and Analysis of Data :- Classification, tabulation, presentation of
data through graphs, bar diagram, pie diagram.
C) Correlation and Regression:- Spearman’s rank correlation. Regression – Simple
and multiple regression.
D) Probability Theory :- Concept of Probability, Types of events, law of addition and
multiplication.
E)Theoretical Distribution :- Discrete theoretical distributions - Binomial
Distribution, possion distribution.
F) Hypothesis Testing :- Meaning and types , test of significance- t test, Z test , F
test and chi - square test.

Suggested Readings
1. Gupta S.P(1988) –Statistical Methods- Sultan Chand & Sons , Delhi ,
2. Gupta, S. C. (1993), Fundamentals of Applied Statistics, S. Chand & Sons, New Delhi.

Unit IX
Econometrics
A)Introduction:- Definition , Scope, relationship with statistics, mathematics,
mathematical economics and economics.
B) Regression Analysis :- Simple regression, multiple regression and regression with
qualitative independent variables, Auto regressive and distributed lag models.
C) Simultaneous - equation models :- Nature , General simultaneous - equation
model: examples, structural form and reduced – form, Estimation of simultaneous
- equation models - Indirect Least - squares method (ILS), Two - Stage Least -
squares method (2SLS), Full information maximum Likelihood estimation (FIML)
D) Time Series Analysis :- Unit root test, spurious regression, Box - Jenkins
methodology.

Suggested Readings:
1. Gujarati, D.N. (2005), Basic Econometrics, McGraw Hill, New Delhi.
2.Koutsoyiannis, A. (1977), Theory of Econometrics (2nd Edition),
The Macmillan Press Ltd. London.
3. Johnston, J. (1991), Econometrics Methods, McGraw Hill Book Co., London.

Unit X
Mathematical Economics
A) Simple Calculus and its Applications :- Concept of functions, types of functions,
concepts of derivatives, rules of differentiation, partial derivatives, rules of partial
differentiation, maxima and minima in single and multi - variable functions.
B)Theory of Consumer Behaviour :- Demand function, ordinal utility
Maximization, Slutsky equation, income, substitution and price effects, concept of
elasticity and its applicantions . Additive utility function, indirect utility function,
consumers surplus, linear expenditure system.
 C) Theory of Production and Cost :- Homogenous and non-homogenous production
functions, short and long term production functions, Cobb-Douglas production
function, CES production function and its properties. Cost function , simple
derivation of short run cost function.
D) Input-Output Analysis :- Open and closed system , Leontief’s dynamic model,
Static model, applications of input – output analysis.
E) Game Theory :- Concept of a game , Two - person – Zero - Sum game, pure and
mixed strategies. Pay off matrix, saddle point solution.
F) Consumption Function :- Consumption Function , Static and dynamic multiplier,
Acceleration principle.

Suggested Readings:
1. Chiang, A. C. (1986), Fundamental Methods of Mathematical Economics, McGraw
Hill, New York.
2. Dowling . E. T., Introduction to Mathematical Economics (2ndEdition),(Schaum’s
Outline Series of Theory and Problems), McGraw-Hill, USA, 1992
3. Aggarwal B.M.(2010) ,Business Mathematics & Statistics , Ane Books Pvt. Ltd,
New Delhi