JAIBP Economics Syllabus

Economics syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Economics in JAIBP, not a summary of it.

1. 1

   Introduction to Economics

   3 topics

   • Nature and Scope of Economics
   • Microeconomics vs Macroeconomics
   • Scarcity and Opportunity Cost
2. 2

   Demand, Supply and Market Equilibrium

   3 topics

   • Theory of Demand and Supply
   • Market Equilibrium and Price Determination
   • Consumer Behaviour
3. 3

   Production and Market Structures

   3 topics

   • Theory of Production and Costs
   • Perfect Competition and Monopoly
   • Monopolistic Competition and Oligopoly
4. 4

   National Income and Output

   3 topics

   • Measuring National Income
   • Determination of National Income
   • Inflation and Unemployment
5. 5

   Money, Banking and Monetary Policy

   3 topics

   • Functions and Supply of Money
   • Role of the Central Bank
   • Monetary Policy Instruments
6. 6

   International Economics and Public Finance

   4 topics

   • International Trade and Balance of Payments
   • Exchange Rates
   • Fiscal Policy and Taxation
   • The Pakistan Economy

Economics flashcards for JAIBP

23 of 54 cards from the Economics deck — real questions with worked answers.

1. Define economics in the context of scarcity.

   Economics is the social science that studies how individuals, firms, and societies allocate scarce resources among competing unlimited wants to maximize satisfaction.

2. Who is regarded as the 'father of economics' and which 1776 work founded the discipline?

   Adam Smith, through his book 'An Inquiry into the Nature and Causes of the Wealth of Nations' (1776).

3. State the three central economic questions every society must answer.

   What to produce, how to produce, and for whom to produce.

4. What is the difference between positive and normative economics?

   Positive economics describes 'what is' using testable, fact-based statements; normative economics prescribes 'what ought to be' based on value judgments.

5. Distinguish microeconomics from macroeconomics.

   Microeconomics studies individual units (consumers, firms, single markets, prices); macroeconomics studies the economy as a whole (national income, inflation, unemployment, growth).

6. Define scarcity and explain why it is the fundamental economic problem.

   Scarcity is the condition where limited resources cannot satisfy unlimited human wants, forcing choice and making allocation the core economic problem.

7. Define opportunity cost and give a simple example.

   Opportunity cost is the value of the next-best alternative foregone when a choice is made; e.g., choosing to study an extra hour costs the wage you could have earned working that hour.

8. What does the Production Possibility Curve (PPF) illustrate, and what does a point inside it indicate?

   The PPF shows the maximum combinations of two goods producible with given resources and technology; a point inside indicates inefficiency or unemployment of resources.

9. Why is the Production Possibility Curve typically concave (bowed outward)?

   Because of increasing opportunity cost — resources are not perfectly adaptable, so producing more of one good sacrifices increasing amounts of the other.

10. State the Law of Demand.

    Other things equal, as the price of a good falls its quantity demanded rises, and as price rises quantity demanded falls — giving an inverse price–quantity relationship.

11. List the main determinants of demand other than the good's own price.

    Income, prices of related goods (substitutes and complements), tastes and preferences, consumer expectations, and number of buyers.

12. Distinguish a change in quantity demanded from a change in demand.

    A change in quantity demanded is movement ALONG the demand curve caused by the good's own price; a change in demand is a SHIFT of the whole curve caused by non-price determinants.

13. State the Law of Supply.

    Other things equal, as the price of a good rises its quantity supplied increases, and as price falls quantity supplied decreases — a direct price–quantity relationship.

14. List the main non-price determinants of supply.

    Input/resource prices, technology, prices of related goods, producer expectations, taxes and subsidies, and number of sellers.

15. What is market equilibrium?

    The price and quantity at which quantity demanded equals quantity supplied, so there is no tendency for price to change (the market clears).

16. What is a surplus, and how does the market correct it?

    A surplus (excess supply) occurs when price is above equilibrium so quantity supplied exceeds quantity demanded; competition among sellers pushes price down toward equilibrium.

17. What is a shortage, and how does the market correct it?

    A shortage (excess demand) occurs when price is below equilibrium so quantity demanded exceeds quantity supplied; competition among buyers pushes price up toward equilibrium.

18. How does an increase in demand (rightward shift) affect equilibrium price and quantity, supply unchanged?

    Both equilibrium price and equilibrium quantity rise.

19. How does an increase in supply (rightward shift) affect equilibrium price and quantity, demand unchanged?

    Equilibrium price falls and equilibrium quantity rises.

20. Give the formula for price elasticity of demand (PED).

    PED = percentage change in quantity demanded / percentage change in price.

21. Classify demand as elastic, inelastic, or unit-elastic using the PED value.

    |PED| > 1 is elastic; |PED| < 1 is inelastic; |PED| = 1 is unit-elastic.

22. How does the relationship between price and total revenue differ for elastic versus inelastic demand?

    With elastic demand, a price cut raises total revenue; with inelastic demand, a price increase raises total revenue (revenue moves opposite to price when elastic, same as price when inelastic).

23. Give the formula for income elasticity of demand and state its sign for normal and inferior goods.

    Income elasticity = %ΔQuantity demanded / %ΔIncome; positive for normal goods, negative for inferior goods.

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