CA Foundation Business Economics Study Material

CA Foundation Business Economics Study Material

It gives us great pleasure to present the study material of Business Economics which has been introduced at the foundation level of Revised CA course. It is based on the latest syllabus prescribed by the Board of Studies, ICAI.
According to the new syllabus, there are five chapters in Business Economics namely,

1. Introduction to Business Economics
2. Theory of Demand and Supply
3. Theory of Production and Cost
4. Price Determination in Different Markets
5. Business Cycles.

An attempt has been made to explain the concepts systematically through the use of diagrams, tables and examples in a lucid and easy language. At the end of each chapter lot of multiple choice questions are given to enhance the student’s understanding, analytical ability and interpretation.

All suggestions for further improvement and feedback are welcomed.

Chapter 1 Nature and Scope of Business Economics

• Introduction
• Nature and Scope of Business Economics
• Basic Problems of an Economy and Role of Price Mechanism
• MCQs

Chapter 2 Theory of Demand and Supply

• Introduction to Demand
• Law of Demand
• Elasticity of Demand
• Demand Forecasting
• Theory of Consumer Behaviour
• Supply
• MCQs

Chapter 3 Theory of Production and Cost

• Theory of Production
  • Meaning of Production
  • Factors of Production
  • Production Function
  • Fixed Inputs (Fixed Factors) and Variable Inputs (Variable Factors)
  • Concepts of Product
  • Law of Variable Proportions
  • Law of Returns to Scale
  • Production Optimisation
  • Internal and External Economies
• MCQs

Chapter 4 Price Determination in Different Markets

• Meaning and Types of Markets
• Determination of Prices
• Price-Output Determination Under Different Market Forms
  • Perfect Competition
  • Monopoly
  • Imperfect Competition : Monopolistic Competition
  • Oligopoly
• MCQs

Chapter 5 Business Cycles

• Business Cycle
• MCQs