Tamil Nadu HSE Second Year Economics study plan

Distinguish microeconomics from macroeconomics and classify ten given economic statements as positive or normative with a one-line justification each.

Explain scarcity, choice, opportunity cost and the central problems of what, how and for whom to produce, using one Tamil Nadu example for each problem.

Differentiate the four market forms (perfect competition, monopoly, monopolistic competition, oligopoly) on number of sellers, product nature, entry barriers, price control and demand curve shape, and tabulate the comparison.

Draw and label the revenue curves (AR, MR, TR) of a firm under perfect competition and under monopoly, and state why AR equals MR only in the first case.

Solve five numerical items on equilibrium price and quantity where demand and supply schedules are given in a table.

Compute total utility, marginal utility and average utility from a schedule, and state the law of diminishing marginal utility with the point of satiety marked.

Apply the equi-marginal utility rule to a two-good budget problem and identify the consumer's optimum bundle numerically.

Explain indifference curve properties (slope downward, convex to origin, never intersect) and locate the budget line and consumer equilibrium point on a diagram drawn from given data.

Derive an individual demand curve from a utility schedule and distinguish extension, contraction, increase and decrease of demand with causes.

Calculate total product, average product and marginal product from a factor-input table, and identify the three stages of the law of variable proportions.

Classify fixed and variable costs, compute TC, AC, AVC, AFC and MC from a cost table, and sketch the short-run cost curves in correct relation to each other.

Define GDP at market price, GNP, NNP, NDP, personal income and disposable income, and convert a given set of national income figures from one aggregate to another.

Distinguish the product method, income method and expenditure method of measuring national income, and list the precautions to be taken under each.

Explain the circular flow of income in a two-sector economy and show where leakages and injections enter the flow.

Compute the money multiplier from a given cash reserve ratio and initial deposit, and describe the primary and secondary functions of money.

Distinguish central banking from commercial banking, and list the quantitative instruments of credit control with the direction each takes during inflation.

Define inflation, distinguish demand-pull from cost-push inflation, and explain the effect of inflation on fixed-income earners, debtors and creditors.

Define economic rent and transfer earnings, and explain the Ricardian theory of rent with a numerical illustration of differential surplus.

Distinguish nominal wage from real wage and explain the role of collective bargaining and productivity in wage determination.

Explain the loanable funds and liquidity preference approaches to interest, and distinguish gross profit from net profit.

Outline the components of a government budget and distinguish revenue account from capital account with two examples each.

Classify taxes as direct or indirect and progressive, proportional or regressive, and state the merits and demerits of each with a Tamil Nadu or Indian illustration.

Explain the causes and effects of public debt and the meaning of deficit financing.