Economics CUET UG Notes These notes are designed exactly as per CUET Economics Syllabus for 2026 Introductory Microeconomics Unit I: Introduction, Theory of Consumer Behaviour Unit II: Production and Costs Unit III: The Theory of the firms under perfect competition Unit IV: Market Equilibrium and Simple Applications Introductory Macroeconomics Unit I: Introduction and National Income Accounting Unit II: Money and Banking Unit III: Determination of Income and Employment Unit I

Open Economy Macroeconomics 1. Introduction: Meaning of the Government Budget In a mixed economy like India, the government plays a significant role alongside the private sector. The Government Budget is a constitutional requirement under Article 112 , which mandates the central government to present an 'Annual Financial Statement' before the Parliament for every financial year (running from 1 April to 31 March ). It is a detailed statement of estimated receipts and expen

Government Budget and the Economy 1. Introduction: Meaning of the Government Budget In a mixed economy like India, the government plays a significant role alongside the private sector. The Government Budget is a constitutional requirement under Article 112 , which mandates the central government to present an 'Annual Financial Statement' before the Parliament for every financial year (running from 1 April to 31 March ). It is a detailed statement of estimated receipts and

Determination of Income and Employment I. Introduction to Macroeconomic Equilibrium Macroeconomics seeks to develop theoretical tools called models to describe the processes determining variables like national income, employment, and price levels. The analysis of income determination provided here is based on the theory given by John Maynard Keynes. For the purpose of this model, we assume a short-run environment where the price level of final goods and the rate of interest

Money and Banking I. Meaning and Functions of Money Money is defined as the commonly accepted medium of exchange. In a simple economy with only one individual or a self-sufficient family, money has no role. However, in a modern economy where millions of economic agents engage in market transactions, money becomes an essential instrument to facilitate exchange. Before the advent of money, societies relied on the barter system, which involves the direct exchange of goods and s

Introduction and National Income Accounting Introduction to Macroeconomics Macroeconomics is the branch of economics that studies the behaviour of the economy as a whole . Unlike microeconomics, which focuses on individual economic agents like a single consumer or producer, macroeconomics examines aggregate measures such as total output (GDP), the general price level, and total employment. It seeks to answer broad questions: Will overall prices rise? Is the country's tota

Market Equilibrium and Simple Applications 1. Understanding Market Equilibrium Market equilibrium is defined as a situation where the plans of all consumers and firms in the market match exactly, allowing the market to clear. In a perfectly competitive market, consumers aim to maximise their utility, while firms aim to maximise their profits. Equilibrium occurs when the aggregate quantity that all firms wish to sell equals the quantity that all consumers wish to buy ; in ot

The Theory of the firms under perfect competition 1. Defining Features of Perfect Competition Perfect competition describes a specific market environment where both buyers and sellers are price-takers. A perfectly competitive market is characterised by several defining features: Large Number of Buyers and Sellers: The market comprises so many individuals that each one is negligible relative to the total market size. Consequently, no single buyer or seller can influence the m

Production and Costs The Production Function Production is the process by which a firm transforms inputs (factors of production) into outputs that can be consumed or used for further production. A production function specifically describes the relationship between the quantities of inputs used and the maximum quantity of output that can be produced from those inputs given a specific technology. For a firm using two factors, Labour (L) and Capital(K) , the function is ex

Introduction, Theory of Consumer Behaviour Introduction to Microeconomics Microeconomics is the branch of economics that studies the behaviour of individual economic agents , such as consumers and producers, in the markets for specific goods and services. It focuses on how these individuals make decisions and how their interactions determine the prices and quantities of goods in the market. The primary decision-makers, or economic agents , include individuals who decide wh