CA Foundation Business Economics Paper: Study Material, Weightage, and Paper Pattern
Introduction
This article provides a complete overview of the CA Foundation Economics study material, including the syllabus, paper design, and passing requirements, along with recommendations for optimal study time for each topic.
The CA path begins with the CA Foundation Examination, a CA course guide focused on study and preparation in Business economics that lays the foundation for economic theories and their application in the business environment, providing candidates with the necessary skills for industry success.
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CA Foundation Business Economics Study Material
Chapter 1: Introduction to Business Economics
- Meaning and scope of Business Economics.
Chapter 2: Basic Problems of an Economy and Role of Price Mechanism.
- Theory of Demand and Supply
- Meaning and Determinants of Demand, Law of Demand, and Elasticity of Demand: Price, Income, and Cross-Elasticity.
- Theory of Consumer’s Behaviour -Indifference Curve Approach.
- Meaning and Determinants of Supply, Law of Supply and Elasticity of Supply, Market Equilibrium, and Social Efficiency.
Chapter 3: Theory of Production and Cost
- Meaning and Factors of Production, Short Run and Long Run.
- Law of Production: The Law of Variable Proportions and Laws of Returns to Scale, Producer’s Equilibrium.
- Concepts of Costs Short-run and long-run costs; Average and Marginal Costs, Total, Fixed and variable costs.
Chapter 4: Price Determination in Different Markets
- Market Structures: Perfect Competition, Monopoly and Monopolistic Competition. Using Game Theory to study Oligopoly.
- Price determination in these markets.
- Price- Output Determination under Different Market Forms.
Chapter 5: Determination of National Income
- Macro Economic Aggregates and Measurement of National Income.
- Determination of National Income: Keynes’ Two Sector Basic Model, Three Sectors, and Four Sectors Models.
Chapter 6: Business Cycles
- Meaning
- Phases
- Features
- Causes behind these cycles
Chapter 7: Public Finance
- Fiscal Functions: An Overview, Centre, and State Finance.
- Market failure or government intervention to correct market failure.
- Process of budget making: sources of revenue, expenditure management, and management of public debt.
- Fiscal Policy.
Chapter 8: Money Market
- Concept of money demand.
- Important theories of demand for money.
- Concept of money supply, cryptocurrency, and other new terminology.
- Monetary Policy.
Chapter 9: International Trade
- Theories of International Trade, including theories of intra-industry trade, by Krugman.
- Trade Policy: The Instruments of Trade Policy.
- Trade Negotiations.
- Exchange Rates and its economic effects.
- International Capital Movements: Foreign Direct Investment.
Chapter 10: Indian Economy
(Before 1950: Chanakya and Nand Vansh, OECD Paper (1950- 1991), Basic Knowledge, 1991 Onwards.
Weightage of Business Economics in CA Foundation
| Subject | Weightage |
|---|---|
| 1. Introduction to Business Economics | 5% |
| 2. Theory of Demand and Supply | 10% |
| 3. Theory of Production and Cost | 10% |
| 4. Price Determination in Different Markets | 15% |
| 5. Determination of National Income | 15% |
| 6. Business Cycles | 5% |
| 7. Public Finance | 10% |
| 8. Money Market | 10% |
| 9. International Trade | 10% |
| 10. Indian Economy | 10% |
CA Foundation Business Economics Paper Pattern
| Particulars | Details |
|---|---|
| Conducting Body | The Institute Of Chartered Accountants of India (ICAI) |
| Mode of exam | Offline |
| Frequency | TWICE in a year (May or December) |
| Level of difficulty | Easy to Moderate |
| Question paper (s) | Paper 4 – Business Economics |
| Papers Duration | 2 hours |
| Question Type | Paper 4 – Objective |
| Marks | 100 marks. |
| Marking scheme | For objective examinations (Paper 4), ¼ mark will be subtracted for each incorrect answer. |
Passing the Criteria CA Foundation for Business Economics
To pass the CA Foundation exam for Business Economics CA Foundation Weightage in 2024, candidates must meet the following criteria:
- Let 40% be the lowest mark in the Business Economics paper.
- Secure a collective total of 50 percent at the end of four tests.
- Candidates missing this Institution of Chartered Accountants of India (ICAI) requirement for the Foundation exam will be declared and may need to reappear for the Foundation papers.
In an attempt to prepare the candidates, they may follow the CA foundation study material issued by ICAI, which is functionally flexible and puts forth widely related topics and concepts under the syllabus. This set of study material acts as a basis for good preparation, and you will perform most excellently if your studies use it.
How to Prepare for the CA Foundation 2024 Exams?
To prepare successfully for the CA Foundation 2024 exams, follow these steps:
- Knowing the Exam Syllabus: Become familiar with CA Foundation exam syllabus from the Institute of Chartered Accountants of India (#ICAI). Ensure a full overview of the whole area, including all sub-branches.
- Create a Study Schedule: Time your schedule according to the CA Exam time table. Assign enough of the class time to touch on each subject properly, but also make provisions for revisions and mock tests.
- Refer to Standard Study Material: Make the official study notes from ICAI your main supporter. It is the complete guide, which talks about every question in a detailed manner for the purpose of CA exams.
- Practice Regularly: For practice purposes, go through as many past papers as possible to learn the exam patterns and types of questions asked. Therefore, this will also add to your time management capacity.
- Take Mock Tests: Prepare CA Foundation mock test papers by doing them frequently to measure your preparation stages. While doing each test, review your results to determine which areas you need to improve.
- Revise Regularly: Make study dates for revision to improve and secure your knowledge on the topics. I will be quick, describing the main concepts so as to be practiced before the exams.
Through carefully and religiously adhering to this process and primarily staying focused on your studies, you will become ready for the CA Foundation Exam 2024 to ensure a favourable outcome for yourself.
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Our CA Foundation study material is carefully built to incorporate all components, including every concept related to excelling in the examinations. Our study material ranges from thorough explanations to practice questions and mock exams, and we strive to help students to the level that they can build a strong foundation in subjects like accounting, taxation, law, and others.
Most Common Questions for CA Foundation
1. What are the papers in Foundation Course?
There are 4 papers in the Foundation Course, which are as follows:
1: Accounting (100 marks)
2: Business Laws (100 marks)
3: Quantitative Aptitude (100 marks)
• Business Mathematics
• Logical Reasoning
• Statistics
4: Business Economics (100 marks)
2. When are Foundation Examinations held?
Foundation Examinations are held twice a year in the months of June and December.
3. What is the examination pattern in Foundation Examination?
Papers 1 and 2 are subjective, and Papers 3 and 4 are objective.
4. What is the passing criteria for the Foundation Examination?
A student is declared to have passed the Foundation examination if he or she obtains at one sitting a minimum of 40% marks in each paper and a minimum of 50% marks in the aggregate of all the papers.
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