Get access to latest and updated syllabus of PIPFA Level 2 Business Economics now. Here you will find detailed course content or Syllabus of PIPFA Business Level 2 Economics for upcoming attempt.
Unfortunately, PIPFA does not publish it’s own study text. But you need not to worry as you can use study texts of ICAP and/or ICMAP. You will have the advantage on other students. The reason being ICAP and ICMAP study texts are comparatively more difficult than the books recommended by PIPFA examination body.
Syllabus GRID:
Here is the grid for syllabus of PIPFA Level 2 Business Economics.
| GRID | WEIGHTAGE |
| Basic concepts of economics | 5 – 10 |
| Microeconomics | 25 – 35 |
| Macroeconomics | 25 – 35 |
| Banking system, financial markets and international Trade | 25 – 35 |
| Total | 100 |
Course Outline:
The course outline for syllabus of PIPFA Level 2 Business Economics for upcoming attempt gives an overview of the course .The detailed Syllabus of PIPFA Level 2 Business Economics for upcoming attempt is given below the course outline section.
Basic Concept of economics:
- Multiplicity of wants and scarcity of resources
- Factors of Production
- Production Possibility Curve
- Economic systems (Market, Planned, Mixed, Islamic)
Microeconomics:
- Importance, scope and limitations of microeconomics
- Demand and Supply:
• Law of demand
• Law of supply
• Equilibrium of demand and supply
• Elasticity of demand and supply
- Law of diminishing marginal utility and law of equimarginal utility
- Consumer’s equilibrium
- Indifference curves
- Perfect competition, monopoly, monopolistic competition and oligopoly
- Equilibrium of firms under various markets and in short-term and long-term
- Law of increasing returns and law of diminishing returns
- Cost of revenue
Macroeconomics:
- Scope and limitations of macroeconomics
- Circular flow of income
- National Income and related concepts i.e. GDP, GNP, NNP and DI
- Three approaches to measurement of national income
- Consumption, savings and investment functions
- Marginal propensity to consume and save
- Multiplier and accelerator
- Phases of business cycle
- Inflation and unemployment
- Fiscal budget
- Principles, methods and forms of taxation
Banking System, financial markets and international trade:
- Banking System
• Functions and demand for money
• Types of banks and financial institutions and their functions
• Credit formation by banks
• Role of central bank
• Monetary policy and its objectives
- Financial Markets
• Money markets
• Capital markets
- International Trade
• Balance of trade
• Balance of Payments
• Foreign exchange rate (fixed and floating) and its determination
• Factors affecting the size of international trades
- Islamic banking system
- Public & Private Finance
Detailed Syllabus Contents:
The detailed Syllabus of PIPFA Level 2 Business Economics for upcoming attempt is given below.
Basic Concept of economics:
- Overview of the definitions of economics put forward by Adam Smith, Alfred Marshall and Lionel Robbins
- Describe the scope, objectives and importance of economics
- Describe the concept of scarcity, kinds of scarce resources, choices and wants
- Describe, with examples, the concept of economic problem and its implications for an economy
- Describe the concepts of goods and services and identify various types of goods namely merit goods, demerit goods, public goods, private goods, club goods and free goods
- Differentiate between microeconomics and macroeconomics and their scope, importance and limitations.
- Distinguish income from wealth.
- Explain with examples the four factors of production and identify the rewards of factors of production
- Describe the concepts of economic agents, consumption, production and specialization, division of labor, technology and capital formation
- Describe the production possibility curve and its relevance to the concept of opportunity cost.
- Describe the major functions of an economic system
- Explain the salient features of planned mixed, market economy and Islamic economic system
- Provide example of a mixed economy, a planned economy and a market economy
- Describe the merits and demerits of planned, mixed and market economies
- Compare the Islamic economic system with other economic systems.
Micro Economics:
- Define the concept of demand, state the differences between want and demand and individual and market demand
- Define and explain law of demand with the help of schedule and graph and explain assumptions and limitations of the law
- Identify the movements along and shifts of a demand curve and explain the factors responsible
- Assess the practical importance of law of demand.
- Define the concept of market and market equilibrium
- Explain the determination of price by equilibrium of demand and supply with the help of a schedule and graph
- Explain the effect of changes in demand and supply on market equilibrium
- Discuss the determination of price of perishable and durable goods.
- Define price elasticity of demand and explain the degrees of price elasticity of demand
- Explain approaches to measure price elasticity of demand
- Explain practical importance and determinants of price elasticity of demand
- Discuss income and cross elasticity of demand and their practical importance
- Describe the concept of elasticity of supply and explain the percentage and graphical methods of measurement of elasticity of supply
- Describe the determinants of supply and elasticity
- Define the term utility, total and marginal utility
- Explain the law of diminishing marginal utility with the help of a graph and a schedule
- Explain the assumptions, limitations and practical importance of the law of diminishing marginal utility
- Explain the law of equi marginal utility with the help of a schedule and a graph
- Explain the limitations and practical importance of law of equi- marginal utility
- Describe the meaning and characteristics of indifference curves
- Explain Budget line and consumer’s equilibrium through indifference curve analysis
- Understand the concept of cost of production and its further classification into implicit and explicit costs
- Discuss short run curves of total cost, total fixed cost, total variable cost, average cost and marginal cost with the help of a schedule and graph.
- Derive a long run average cost curve from a short run average cost curve
- Derive a long run marginal cost curve with the help of total cost curve.
- Explain the concept of economies and diseconomies of scale and their impact on the long run costs.
- Describe the concepts of marginal revenue, total revenue and average revenue
- Define perfect competition, state its features and explain revenue curves under perfect and imperfect competition.
Macroeconomics:
- Define national income, gross domestic product, gross national product, net national product, personal income, disposable personal income per capita, nominal and real GDP
- Explain circular flow of national income
- Explain the product approach, income approach and expenditure approach to the measurement of national income
- State the difficulties usually faced in measuring National Income.
- Define and explain consumption, autonomous and induced consumption, average and marginal propensity to consume
- Identify how Keynes’ Psychological law of consumption explains the relationship between consumption and income with the help of average propensity to consume and marginal propensity to consume curves
- Explain the determinants of the consumption function
- Define and explain saving, average and marginal propensity to saving
- Explain the determinants of saving
- Understand the stability of consumption and saving functions in the short run and discuss the reasons thereof
- Understand the meaning of investment, induced investment and autonomous investment
- Explain the relationship of investment with marginal efficiency of capital and interest rate
- Explain classical and Keynesian approach to determine equilibrium level of output/income.
- Comprehend the effect of the multiplier on the level of national income and is limitations
- Comprehend the principle of acceleration and its assumptions
- Understand how the multiplier and accelerator interact and cause fluctuations in output.
- Describe the concept of unemployment, full employment and types of unemployment
- Discuss the measures to reduce unemployment
- Understand concepts of inflation, deflation, stagflation, wage spiral inflation, mild and hyperinflation
- Explain the causes of inflation and measures to overcome inflation with special reference to Pakistan
- Discuss the cost of inflation and Phillips Curve
- Explain the objectives of fiscal policy and how they are achieved through fiscal budgets
- Explain the limitations of fiscal policy
- Define direct, indirect, proportional, progressive and regressive taxation
- Understand functions of taxation, types of taxes and characteristics of good tax policy
- Explain the canons of taxation
- Explain the advantages and disadvantages of direct taxation
- Explain the advantages and disadvantages of indirect taxation.
Banking System, financial markets and international trade:
- Define a bank and describe its kinds
- Describe the functions of a central bank.
- Understand the meaning of monetary policy
- Understand the objectives of monetary policy and the mutual conflict of the objectives.
- Describe the main features and objectives of money markets.
- Describe the main features and objectives of capital markets
- Distinguish between balance of trade and balance of payment
- Understand the nature of items that are accounted for the concept of balance of trade and payment
- Understand the different parts of balance of payment
- Explain the reasons of balance of payment deficit and measures to rectify it with special reference to Pakistan
- Explain the concept of J curve and inverse J curve
- Explain the concept of exchange rate, its determination and government’s policy to influence it.
- To understand interest free banking system
- To understand the utilization of finance
Focus
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