# IIT jam economics syllabus

IIT jam economics syllabus – hello and welcome to all IIT JAM aspirants, here you will get the exam pattern of the IIT JAM exam and the syllabus of each subject in this post I will cover the syllabus of Economics for the IIT JAM exam.

## IIT jam economics syllabus 2021

IIT JAM syllabus for economics will cover in the following points let’s begin with one by one.

• Microeconomics
• Macroeconomics
• Statistics for Economics
• Indian Economy
• Mathematics for Economics

### Microeconomics (IIT jam economics syllabus)

Consumer theory: Preference, utility and representation theorem, budget constraint, choice, demand
(ordinary and compensated), Slutsky equations, choice under risk and uncertainty, revealed preference axioms

Production, costs with perfectly competitive markets: Technology, isoquants, production with one
and more variable inputs returns to scale, short-run and long-run costs, cost curves in the short run
and long-run, perfect competition in markets

General equilibrium and welfare: Equilibrium and efficiency under pure exchange and production,
welfare economics, theorems of welfare economics

Market structure: Monopoly, pricing with market power, price discrimination (first, second and third),
monopolistic competition and oligopoly.

Game theory: Strategic form games, Nash equilibrium, mixed extension, and mixed strategy Nash
equilibrium iterated elimination of dominated strategies, examples: Cournot, Bertrand duopolies,
Prisoner’s dilemma, cooperative game theory: Shapley value, Nash bargaining.

Public goods and market failure: Externalities, public goods, and markets with asymmetric information (adverse selection and moral hazard), VCG mechanism, and transfer rules.

### Macroeconomics (IIT jam economics syllabus)

National Income Accounting: Structure, key concepts, measurements, and circular flow of incomefor closed and open economy, money, fiscal and foreign sector variables – concepts and measurements.

Behavioral and Technological Functions – Consumption functions – absolute income hypothesis,
life-cycle and permanent income hypothesis, investment functions- Keynesian, money demand and
supply functions, production function.

Business Cycles and Economic Models: Business cycles-facts and features, the Classical model of
the business cycle. the Keynesian model of the business cycle, a simple Keynesian cross model of income and employment determination and the multiplier (in a closed economy), IS-LM Model, Hicks’
IS-LM synthesis, the role of monetary and fiscal policy.

Business Cycles and Economic Models (Open Economy): Open economy, Mundell-Fleming model,
Keynesian flexible price (aggregate demand and aggregate supply) model, the role of monetary and
fiscal policy.

Inflation and Unemployment: Inflation – theories, measurement, causes, and effects, Unemployment.
-types, measurement, causes, and effects.

Growth Models: Harrod-Domar, Solow, and Neo-classical growth models.

### Statistics for Economics

Probability theory, Sample spaces, and events, Axioms of probability and their properties, conditional
probability and Bayes’ rule, independent events.

Random variables and probability distributions, probability distributions, expected values and functions of random variables, properties of commonly used discrete and continuous distributions.

Random sampling, Density, and distribution functions for jointly distributed random variables, computing expected values of jointly distributed random variables, covariance, and correlation coefficients.

Point and interval estimation, estimation of population parameters using methods of moments and
maximum-likelihood procedures, properties of estimators, confidence intervals.

Hypothesis testing, distributions of test statistics, testing hypotheses related to population parameter-
Type I and Type II errors, the power of a test, tests for comparing parameters from two samples.

### Indian Economy

Indian economy before 1950: Transfer of tribute, the deindustrialization of India
Planning and Indian development: Planning models, the relation between agricultural and industrial
growth challenges faced by Indian planning.

Indian economy after 1991: Balance of payments crisis in 1991, major aspects of economic reforms
in India after 1991, reforms in trade and foreign investment.

Banking, finance and macroeconomic policies: aspects of banking in India, CRR and SLR, financial
sector reforms in India, fiscal deficit, savings and investment rates in India.

Inequalities in social development: India’s achievements in health, education, and other social sectors, disparities between the Indian States in human development.

Poverty: Methodology of poverty estimation, Issues in poverty estimation in India.
India’s labor market: unemployment, labor force participation rates.

### Mathematics for Economics

Preliminaries and Functions of one real variable: a. Set theory and number theory, Graphs, elementary types of functions: quadratic, polynomial, power, exponential, logarithmic, sequences and series: convergence, algebraic properties and applications, b. Continuous functions: characterisations.

properties with respect to various operations and applications, c. Differentiable functions: characterizations, properties with respect to various operations and applications, d. Second and higher-order
derivatives: properties and applications.

Single-variable optimization: Geometric properties of functions: convex functions, their characterizations, and applications, local and global optima: geometric and calculus-based characterizations.

and applications. Linear algebra: Vector spaces – algebraic and geometric properties, scalar products, norms, orthogonality, linear transformations: properties, matrix representations, and elementary operations, systems of linear equations: properties of their solution sets, determinants: characterization, properties, and applications.

Functions of several real variables: Geometric representations – graphs and level curves, differentiable functions: characterisations, properties with respect to various operations and applications.

second-order derivatives: properties and applications, the implicit function theorem, and application
to comparative statics problems, homogeneous and homothetic functions: characterizations and
applications.

Multivariate optimization: Convex sets, geometric properties of functions: convex functions, their
characterisations, properties and applications, further geometric properties of functions: quasi-convex functions, their characterisations, properties and applications.

unconstrained optimization: geometric characterizations, characterizations using calculus and applications, constrained optimi- sation with equality constraints: geometric characterizations, Lagrange characterization using calculus and applications, properties of value function: envelope theorem and applications.

Linear programming: Graphical solution, matrix formulation, duality, economic interpretation.

Integration, differential equations, and difference equations:– Definite integrals, indefinite integrals
and economic applications, first-order difference equations, equilibrium, and its stability, the first order
differential equations, phase diagrams, and stability.