CUET 2026 Syllabus Economics and Business Economics (Code 309)

Economics/Business
For the Year 2026

Economics – 309
Syllabus for
CUET(UG)

Course I Introductory Microeconomics
Unit I: Introduction, Theory of Consumer Behaviour
 What is microeconomics?
 Central problems of an economy
 Consumer’s Equilibrium: meaning and attainment of equilibrium through
Utility Approach: One and two commodity cases, Consumers Budget and
Optimal choice of the consumer.
 Demand: market demand, determinants of demand, demand schedule,
demand curve, movement along and shifts in the demand curve, price
elasticity of demand, measurement of price elasticity of demand –
percentage, total expenditure, factor determining price elasticity of demand
for a good.
Unit II: Production and Costs.
 Production function: Short run and Long run production function
 Shapes of TP, MP and AP curves
 Cost and Revenue: Concepts of costs; short-run cost curves (fixed and
variable costs; total, average and marginal costs); concepts of revenue – total,
average and marginal revenue and their relationship. Producer’s equilibrium
– with the help of MC and MR.

Unit III: The Theory of the firms under perfect competition
 Features of perfect competition
 Profit maximization.
 Price determination under perfect competition – equilibrium price, effects of
shifts in demand and supply.
 Supply: market supply, determinants of supply, supply schedule, supply
curve movement along and shifts in supply curve, price elasticity of supply,
measurement of price elasticity of supply.

Unit IV: Market Equilibrium and Simple Applications
 Market equilibrium, excess demand, excess supply,
 Applications:=- Price ceiling and Price flooring.

Course II Introductory Macroeconomics

Unit I: Introduction and National Income Accounting

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 What is macroeconomics?
 Basic concepts in macroeconomics:
 Circular flow of income; Methods of calculating National Income - Value
Added or Product method, Expenditure method, Income method
 Aggregates related to National Income:
Factor Cost, Basic Prices and Market Price.
GDP and Welfare

Unit II: Money and Banking
 Meaning and functions, supply of money - Money Creation and Money
Multiplier.
 Central bank and its functions (example of the Reserve Bank of India)
 Policy tools to control money supply.

Unit III: Determination of Income and Employment
 Aggregate demand and its components.
 Determination of Income in two sector model.
 Problems of excess demand and deficient demand; measures to correct
them - changes in government spending, taxes and money supply
 Multiplier mechanism.

Unit IV: Government Budget and the Economy
 Government budget - meaning, objectives and components
 Classification of receipts - revenue receipts and capital receipts;
 Classification of expenditure – revenue expenditure and capital
expenditure.
 Balanced, Surplus and Deficit Budget – measures of government deficit.

Unit V: Open Economy Macroeconomics
 Balance of payments account - meaning and components;
 Balance of payments – Surplus and Deficit
 Foreign exchange rate - meaning of fixed and flexible rates and managed
floating. Merits and demerits of exchange rate regimes.
 Determination of exchange rate.
 Managed Floating

Course III: Indian Economic Development
Unit I: Development Policies and Experience (1947-90)

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 A brief introduction of the state of Indian economy on the eve of
independence.
 Indian economic system and common goals of Five Year Plans
 Main features, problems and policies of agriculture (institutional aspects
and new agricultural strategy), industry (IPR 1956; SSI – role &
importance) and foreign trade.
Unit II Economic Reforms since 1991: Macroeconomics: Meaning.
 Economic Reforms since 1991:
 Features and appraisals of liberalisation, globalisation and privatisation
(LPG policy);

Unit III: Current challenges facing the Indian Economy

 Human Capital Formation: How people become resource; Role of human
capital in economic development; Growth of Education Sector in India
 Rural development: Key issues - credit and marketing - role of
cooperatives; agricultural market system, Agriculture diversification;
alternative farming - organic farming
 Employment: Growth and changes in work force participation rate in
formal and informal sectors; problems and policies
 Environment and Sustainable Development: Definition and Functions,
State of India’s environment, Strategies for sustainable development.

Unit IV: Development Experiences of India: A comparison with
neighbours.
 A comparison with neighbours.
 Issues: economic growth, population, sectoral development and other
Human Development Indicators.
 Development Strategies.

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