BSEB Intermediate Economics study guide
BSEB Intermediate Economics · Work through your exam, one topic at a time.
The BSEB Intermediate Economics exam is the Class 12 economics paper set by the Bihar School Examination Board for students completing the intermediate (higher secondary) stage in Bihar. It is taken by arts, commerce and science stream candidates who choose economics as one of their subjects, and the mark feeds directly into the intermediate result used for college admission and for eligibility in many competitive examinations. The BSEB Intermediate Economics study guide has 9 sections and about 2,534 words.
01Introduction to Economics and Basic Concepts
This domain checks whether you can explain the economic problem as a problem of scarcity and choice, distinguish microeconomics from macroeconomics, and use the production possibility frontier (PPF) to show opportunity cost and growth. Scarcity and choice: wants are unlimited, resources are limited and have alternative uses, so every choice has a cost.
312 words, about 2 min02Consumer Behaviour and Demand
This domain tests utility analysis, indifference-curve reasoning, the law of demand, and price elasticity of demand. You must be able to explain why demand curves slope downward and calculate elasticity.
307 words, about 2 min03Producer Behaviour and Supply
This domain covers production in the short and long run, the law of variable proportions, cost and revenue curves, and the law of supply with elasticity of supply. Short run and long run: in the short run at least one factor is fixed; in the long run all factors can vary.
323 words, about 2 min04Forms of Market and Price Determination
This domain asks you to compare perfect competition, monopoly, monopolistic competition and oligopoly, and to find a firm’s equilibrium output using marginal revenue and marginal cost. Perfect competition: many buyers and sellers, homogeneous product, free entry and exit, perfect information.
288 words, about 1 min05National Income and Related Aggregates
This domain tests the definitions and interrelationships of GDP, GNP, NNP, NDP, market price and factor cost, the three measurement methods, and real versus nominal income. GDP at market price: value of final goods and services produced within domestic territory in a year.
244 words, about 1 min06Money and Banking
This domain tests the functions of money, measures of money supply, the role of the central bank, credit creation by commercial banks, and tools such as CRR, SLR and repo rate. Functions of money: medium of exchange, unit of account, store of value and standard of deferred payment.
290 words, about 1 min07Determination of Income and Employment
This domain tests the consumption function, saving, equilibrium income, the investment multiplier and the concepts of full employment, deflationary gap and inflationary gap. Consumption function: C = a + bY, where a is autonomous consumption and b is the marginal propensity to consume (MPC).
261 words, about 1 min08Government Budget and the Economy
This domain tests budget receipts and expenditure, revenue and capital classifications, and the meaning and calculation of revenue deficit, fiscal deficit and primary deficit. Revenue receipts: tax and non-tax receipts that do not create liabilities or reduce assets.
252 words, about 1 min09Balance of Payments and Foreign Exchange
This domain tests the structure of the balance of payments, current and capital accounts, and exchange-rate concepts including depreciation, appreciation, devaluation and revaluation. BoP: a systematic record of all economic transactions between residents and the rest of the world in a year.
257 words, about 1 min