IAI CB2 study guide
IAI CB2 · Work through your exam, one topic at a time.
CB2, Business Economics, is a subject in the actuarial examination system administered by the Institute of Actuaries of India (IAI). It is aimed at candidates working toward actuarial qualification who need a working command of microeconomics and macroeconomics as they apply to insurance, pensions and financial markets. The IAI CB2 study guide has 9 sections and about 3,115 words.
01Demand, Supply and Market Equilibrium
Demand, supply and equilibrium is the foundation for price formation. CB2 questions ask you to identify non-price determinants, shift curves correctly and compute equilibrium with and without government intervention.
337 words, about 2 min02Elasticity of Demand and Supply
Elasticity measures responsiveness. The exam tests formulas, determinants, revenue implications and tax incidence, often with numerical calculations.
326 words, about 2 min03Consumer Behaviour and Utility Analysis
Consumer theory explains choice under a budget constraint. CB2 tests marginal utility, indifference curves, the equi-marginal condition, income and substitution effects, and consumer surplus.
351 words, about 2 min04Production, Costs and Firm Behaviour
Production and cost analysis links inputs to outputs and outputs to costs. The exam tests short-run returns, cost curves, scale economies and the profit-maximising and shutdown rules.
347 words, about 2 min05Market Structures and Pricing
Market structure determines pricing and output. CB2 tests the spectrum from perfect competition to monopoly, oligopoly interdependence, efficiency and price discrimination.
356 words, about 2 min06National Income and Macroeconomic Aggregates
National income accounting defines and measures aggregate output. The exam tests GDP components, the three measurement approaches, real versus nominal values and the limits of GDP.
343 words, about 2 min07Money, Banking and Interest Rates
Money and banking connects the central bank, commercial banks and interest rates. CB2 tests money functions and measures, credit creation, the money multiplier and the inverse bond price-yield relationship.
376 words, about 2 min08Inflation, Unemployment and Business Cycles
This domain covers inflation measurement and causes, unemployment types and measurement, the Phillips curve and business-cycle fluctuations. Inflation is a sustained rise in the general price level.
332 words, about 2 min09Fiscal and Monetary Policy
Fiscal and monetary policy is about stabilisation. CB2 tests instruments, multipliers, transmission mechanisms, crowding out, lags and policy mix.
347 words, about 2 min