AGRI Grovestudies
1
Economics and Agriculture Economics
Economics: Meaning, scope and subject matter, definitions, activities, approaches to economic analysis; micro and
macro economics, positive and normative analysis. Nature of economic theory; rationality assumption, concept of
equilibrium, economic laws as generalization of human behavior. Basic concepts: Goods and services, desire, want,
demand, utility, cost and price, wealth, capital, income and welfare. Agricultural economics: meaning, definition,
characteristics of agriculture, importance and its role in economic development. Agricultural planning and development
in the country.
2
Demand and Production
Demand: meaning, law of demand, schedule and demand curve, determinants, utility theory; law of diminishing
marginal utility, equi-marginal utility principle. Consumer’s equilibrium and derivation of demand curve, concept of
consumer surplus. Elasticity of demand: concept and measurement of price elasticity, income elasticity and cross
elasticity. Production: process, creation of utility, factors of production, input output relationship. Laws of returns: Law
of variable proportions and law of returns to scale. Cost: concepts, short run and long run cost curves.
3
Supply and Distribution
Supply: Stock v/s supply, law of supply, schedule, supply curve, determinants of supply, elasticity of supply. Market
structure: meaning and types of market, basic features of perfectly competitive and imperfect markets. Price
determination under perfect competition; short run and long run equilibrium of firm and industry, shut down and break
even points. Distribution theory: meaning, factor market and pricing of factors of production. Concepts of rent, wage,
interest and profit. National income: Meaning and importance, circular flow, concepts of national income accounting
and approaches to measurement, difficulties in measurement.
4
Banking and Tax
Population: Importance, Malthusian and Optimum population theories, natural and socioeconomic determinants, current
policies and programmes on population control. Money: Barter system of exchange and its problems, evolution,
meaning and functions of money, classification of money, supply, general price index, inflation and deflation. Banking:
Role in modern economy, types of banks, functions of commercial and central bank, credit creation policy. Agricultural
and public finance: meaning, micro v/s macro finance, need for agricultural finance, public revenue and public
expenditure. Tax: meaning, direct and indirect taxes, agricultural taxation, VAT. Economic systems: Concepts of
economy and its functions, important features of capitalistic, socialistic and mixed economies, elements of economic
planning.
