##### Learning Objectives

To enable the students to have sound understanding of fundamentals of economics, finance and be able to apply quantitative techniques to business scenarios.

##### Key Competencies

On successful completion of this exam, the student shall be able to:

• Differentiate between micro and macro economics.
• Have an understanding of the basic concepts of micro and macro economics.
• Basic understanding of fiscal and monitory policies.
• Have a basic understanding of banking systems and financial markets.
• Apply mathematics to find a solution of business problems Explain the cost classifications. Demonstrate the knowledge of cost accounting systems.
• Demonstrate knowledge of probability theory.
• Demonstrate the understanding of sampling techniques and its relation to decisions making.

GRID Weightage
Fundamentals of economics 15-20
Micro and macro economics 25-35
Basic Finance Mathematics 25-30
Probability and regression analysis 20-30
Sampling 15-20
Total 100

##### Fundamentals of Economics
• Introduction to various definitions of economics by renowned economists.
• Define the scope and objectives of economics.
• Understanding of basic economic concepts
• Scarcity
• Four factors of production
• Consumption and production
• Differentiate between income and wealth Compare and contrast between Financial Accounting and cost accounting.
• Describe the production possibility curve.

##### Micro Economics
• Demand & Supply
• Define the concept of demand
• Explain law of demand and its relevance in practical world.
• Explain the shifts of demand curve.
• Explain price elasticity of demand.
• Define the supply and its relationship with price
• Elaborate the law of supply
• Explain supply curve and movements along supply curve.
• Cost and Revenue Curves
• Understand cost of production and its classification.
• Describe short run curves of total cost, variable, fixed cost, marginal cost and average costs.
• Derive long run average costs and marginal cost curves.
• Explain the concept of economies and diseconomies of scale.

##### Macro Economics

Obtain in depth knowledge of macro economic concepts including:

• Understanding economic growth and recessions.
• Basis of measurement of national income like GDP, GNP
• Differentiate between fiscal and monitory policy
• Explain the fundamentals of fiscal & monitory policy.
• Introduction to banking systems and financial markets.

##### Basic Finance mathematics

Demonstrate the knowledge and understanding of:

• Calculate the present value of future cash flows including annuities
• Demonstrate use of NPV in projection selection.
• Present Value calculation for perpetuities.
• Calculate internal rate of return.
• Simple and compound interest calculations.

##### Probability and its distribution

Develop comprehensive understanding of:

• Probability theory
• Counting techniques

##### Least Square Regression

Develop understanding of basic concepts of:

• Linear relationship and linear regression line by lease square method.
• Simple linear correlation
• Coefficient of correlation

##### Sampling

Demonstrate the understating of:

• Sampling techniques
• Standard error of mean
• Sampling with and without replacement
• Test of hypothesis.