Syllabus of PIPFA Level 2 Business Economics

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 of PIPFA Level 2 Business Economics

Syllabus GRID:

Here is the grid for syllabus of PIPFA Level 2 Business Economics.

GRIDWEIGHTAGE
Basic concepts of economics5 – 10
Microeconomics25 – 35
Macroeconomics25 – 35
Banking system, financial markets and international Trade25 – 35
Total100

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

syllabus of PIPFA Level 2 Business Economics syllabus of PIPFA Level 2 Business Economics syllabus of PIPFA Level 2 Business Economics syllabus of PIPFA Level 2 Business Economics syllabus of PIPFA Level 2 Business Economics syllabus of PIPFA Level 2 Business Economics syllabus of PIPFA Level 2 Business Economics syllabus of PIPFA Level 2 Business Economics syllabus of PIPFA Level 2 Business Economics syllabus of PIPFA Level 2 Business Economics syllabus of PIPFA Level 2 Business Economics

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