JKPSC SYLLABUS FOR THE POST OF LECTURER (10+2) ECONOMICS

I. Microeconomics. Theory of consumer behaviour - Indifference curve Analysis; Revealed preference theory; Income and substitution effect; Theory of production- Cobb Douglas and CES Production function; Law of Returns to scale; Law of variable proportions; Technical progress; Producer's Equilibrium; least cost Combination of Inputs; Maximization of Outputs; Theory of costs- Traditional and modern theory of costs: Market- Prefect competition; Equilibrium of a competitive firm in the short and long run; Monopoly; Price discrimination of various degrees; Monopolistic Competition; Duopoly and oligopoly - Cornout and Bertrand models; Collusive & Non collusive Oligopoly; Game theory - Nash Equilibrium; Prisoners' Dilemma; Welfare Economics- Pareto optimality; Arrow's impossibility theorem. Ⅱ. Macroeconomics: National income accounting- National income identities; Theory of output and employmentClassical; Keynesian, Monetarists and New – Classical models; IS-LM model for Closed and Open Economy - Fiscal and monetary policy effectiveness;; Consumption Function- Relative; Permanent and life cycle theories; Investment Function - The marginal efficiency of capital and Tobins Q theory ; Investment Multiplier - ; Multiplier and accelerator interaction. Business cycles – Hicks and Samuelson model; Phillips Curve and its Various Incarnations. III. Growth and Development Economics: Characteristics of underdeveloped countries; Concept and measurement of poverty and inequality; Human Development index; PQLI. Growth: concepts and determinants; HarrodDomar model; Neo-classical models of Solow; Romer model of growth. Balanced and Unbalanced growth Strategies; Critical minimum Effort thesis; low level equilibrium trap; organizational dualism and economic development; The model of complementarities between agriculture and industry; Harris -Todaro model of migration. Sustainable Development Goals. IV. International Economics: Theory of comparative cost; Adam Smith; Ricardo and Mill; Gains from trade; Heckscher - Ohlin Theory and its empirical verification; Rybczynski Theorem; The Stolper - Samuelson Theorem; Factor-Price Equalization Theorem; Terms of Trade – Hypotheses of Secular Deterioration in Terms of Trade; Concept of Immiserizing Growth; Tariffs; Quotas and NonTariff Barriers; Theory of Optimum Tariff; Theory of custom unions- Trade creation and trade diversion; Exchange rate determination; arbitrage; exchange risk — hedging and speculation; Foreign exchange transactions— spot; forward and swap. Balance of payments—meaning and components; Fixed and flexible Exchange Rate Regimes. V. Monetary and Financial Economics: Money— types and functions; Money supply- Determinants and H- theory of money supply; Commercial bank and credit creation mechanism; Central bank— Functions and measures to control money supply; Demand for money— Classical; Keynesian , inventory and Portfolio balance approach; Theories of Interest— Classical; Loanable funds and Neo-Keynesian. Financial system — Structure and classification of financial markets; instruments of money and capital markets; Non-Banking Financial intermediaries; Theories of term structure of Interest Rate— Expectation Theory; Market segmentation theory; Preferred Habitat Theory. VI. Indian Economy: Major features of the Indian economy at independence; Growth and development under different policy regimes; structural change; New agricultural strategy — Land Reforms; Green Revolution; Rationale and practice of Economic planning in India; NITI Ayog & its functions; Inclusive Growth; New Economic Reforms— Liberalisation; Privatisation and Globalisation; New Economic Policies. Foreign Trade — Direction and Composition; Fiscal Federalism in India; Centre - State financial relations; Fiscal & Monetary Policy. VII. Agriculture and Industrial Economics: Interdependence between agriculture and industry; Models of interaction—Lewis; Ranis-Fei model; Agricultural finance — need; importance and sources; Minimum support price; Rationale of industrialization; Concept of optimum size of the firm; Determinants & measurements of industrial efficiency & profitability; Determinants & Theories of industrial location — Alfred Weber, & Paul Krugman; Industrial policies in India. VIII. Public Economics: Concept and solution to Externality; Role of Government— Allocation; Distribution and Stabilisation; Optimal provision of private and public goods; Wagner’s theory of public expenditure; Taxation—types and tax incidence; Theory of optimal Taxation. IX. Elementary statistics: Measures of central tendency and dispersion; Correlation - Karl Pearson's method and rank correlation; Regression- Meaning and scope; Simple and multiple regression; Meaning and definition of probability; additive and multiplicative probability' conditional probability; Testing of hypothesis - level of significance and level of confidence; confidence limits and critical region; tests of significance - type-I and type-If errors; goodness of fit; one tailed and two tailed tests; hypothesis testing based on Z-test; T-tests; chi-square and F tests Index numbers—Meaning and importance; Laspeyre's, Paasche's and Fisher's method. X. Basic Econometrics and Mathematics for Economics: Nature; meaning and scope of econometrics; types of data - time series; cross section and panel data; Estimation through OLS approach; Properties of estimators - Gauss - Markov theorem; R - square and adjusted R-square; Problems of heteroscedasticity; autocorrelation and multicollinearity — Nature, test, consequences and remedial measures; Basic Concepts Set theory— sets and set operations; cartesian product of sets; relations; functions; one-to-one and onto functions; objective functions; composite functions; inverse functions; logarithmic and exponential functions. Differentiation; Rules of differentiation; partial and total differential; relative maxima and minima— first and second derivative test; Euler's theorem; Langrangian multiplier. XI. Environmental Economics Environment and the economy— inter-linkages and trade-off; property rights — open access and common property resource; externalities as a source of market failure; public goods and bads; sustainability: concept and indicators; Measurement of Environmental Values— Concept and types of environmental value; Methods of environmental valuations— defensive expenditure approach, hedonic pricing approach, travel cost approach, contingent valuation technique. Coasian approach; Pigovian taxes; command and control methods; XII. J&K Economy SGDP & employment; structural transformation; unemployment & inflation; structure of labour market; industrial policy (2021-30); trade and export policy (2018-28); Basic Sectoral Issues; Nature & scope of agriculture & industry; diversification of agriculture & Cropping pattern; Tourism; handicraft & energy sector; challenges of investment; Finance and Banking Structure of finance— revenue (tax & non-tax) & expenditure (plan & non-plan); Gadgil plan with special reference to J&K; J&K finance commission; budgetary deficits & FRBM act.