GATE 2024 Economics Syllabus (XH - C1) - Syllabus, Sample Questions, Exam Pattern, Best Books

1

Microeconomics

• Theory of Consumer Behaviour
• Cardinal Approach and Ordinal
• Approach
• Consumer Preferences
• Nature of the utility function
• Marshallian and Hicksian
• demand functions
• Duality Theorem
• Slutsky Equation and Comparative Statics
• Homogeneous and Homothetic Utility Functions 
• Euler’s Theorem
• The Theory of Revealed Preference
• Weak Axiom of Revealed Preference and Strong Axiom of Revealed Preference
• Theory of Production and Costs
• Short-run and Long-run Analysis
• Existence
• Uniqueness and Stability of Market Equilibrium
• Walrasian and Marshallian Stability Analysis
• The Cobweb Model
• Decision-making under uncertainty and risk
• Asymmetric Information
• Adverse Selection and Moral Hazard
• Theory of Agency costs
• The Theory of Search
• Non-Cooperative games
• Constant sum game
• Mixed Strategy & Pure Strategy
• Bayesian Nash Equilibrium
• SPNE
• Perfect Bayesian Equilibria
• Theory of the Firm
• Market Structures
• Competitive and Non-competitive equilibria and their efficiency properties
• Structure-Conduct-Performance Paradigm
• Factor Pricing: Marginal productivity
• Theory of Distribution in Perfectly Competitive markets
• Theory of Employment in Imperfectly Competitive Markets
• Monopolistic Exploitation
• General Equilibrium Analysis
• Welfare Economics
• Fundamental Theorems
• Social Welfare Function
• Efficiency Criteria: Pareto-Optimality

• Slutsky Equation and Comparative Statics
• Non-Cooperative games
• Constant sum game
• Mixed Strategy & Pure Strategy
• Bayesian Nash Equilibrium
• Monopolistic Exploitation
• General Equilibrium Analysis
• Welfare Economics
• Walrasian and Marshallian Stability Analysis
• The Cobweb Model

2

Macroeconomics

• National Income Accounting
• Closed Economy Concepts and Measurement and Open Economy Issues
• Determination of output and employment
• Classical & Keynesian Framework 
• Theories of Consumption: Absolute Income Hypothesis
• Relative Income Hypothesis
• Life Cycle Hypothesis 
• Permanent Income Hypothesis and Robert Hall’s Random Walk Model 
• Investment Function Specifications
• Dale Jorgenson’s Neoclassical Theory of Capital Accumulation and Tobin’s
• Keynesian Stabilization Policies, (Autonomous) Multipliers and Investment Accelerator
• Demand and Supply of Money
• Components of Money Supply
• Liquidity Preference and the Liquidity Trap
• Money Multiplier 
• Interest Rate determination
• Central Banking, Objectives
• Prudential Regulation
• Quantitative Easing 
• Commercial Banking,
• Non-Banking Financial Institutions 
• Capital Market and it's Regulation
• Theories of Inflation and Expectations
• Augmented Phillips Curve
• Real Business Cycles 
• Adaptive Expectations Hypothesis
• Rational Expectation Hypothesis and its critique.
• Closed Economy IS-LM Model and Mundell Fleming Model:
• Monetary and Fiscal Policy Efficacy.
• The Impossible Trinity.

• Determination of output and employment
• Classical & Keynesian Framework 
• Relative Income Hypothesis
• Life Cycle Hypothesis 
• Keynesian Stabilization Policies, (Autonomous) Multipliers and Investment Accelerator
• Demand and Supply of Money
• Components of Money Supply
• Liquidity Preference and the Liquidity Trap
• Money Multiplier 
• Interest Rate determination
• Closed Economy IS-LM Model and Mundell Fleming Model:

3

Statistics, Econometrics and Mathematical Economics

• Probability Theory
• Concepts of probability 
• Probability Distributions (Discrete and Continuous) 
• Central Limit Theorem
• Index Numbers and Construction of Price Indices, Sampling Methods & Sampling Distribution,
• Statistical Inferences 
• Hypothesis Testing
• Linear Regression
• Models and the Gauss Markov Theorem 
• Heteroscedasticity
• Multicollinearity and Autocorrelation
• Spurious regressions and Unit roots
• Simultaneous Equation Models -Recursive and non-recursive
• Identification Problem
• Differential Calculus and its Applications,
• Linear Algebra
• Matrices
• Applications of Cramer’s Rule 
• Static Optimization
• Problems and Applications 
• Input-Output Model
• Linear Programming
• Difference equations and Differential equations with applications

• Statistical Inferences 
• Hypothesis Testing
• Linear Regression
• Models and the Gauss Markov Theorem
• Linear Algebra
• Matrices
• Applications of Cramer’s Rule 
• Input-Output Model
• Linear Programming

4

International Economics

• Theories of International Trade
• International Trade under Imperfect Competition
• Gains from Trade 
• Terms of Trade
• Trade Multiplier
• Tariff and Non-Tariff Barriers to Trade
• Dumping and Anti-Dumping Policies 
• GATT, WTO, and Regional Trade Blocks
• Trade Policy Issues
• Balance of Payments: Composition Equilibrium and Disequilibrium and Adjustment Mechanisms
• Foreign Exchange Market and Arbitrage
• Exchange rate determination
• IMF & World Bank.

• Gains from Trade 
• Terms of Trade
• Trade Multiplier
• Tariff and Non-Tariff Barriers to Trade
• Dumping and Anti-Dumping Policies 
• Foreign Exchange Market and Arbitrage
• Exchange rate determination
• IMF & World Bank

5

Public Economics

• Market Failure and Remedial Measures: Asymmetric Information
• Public Goods
• Externality
• Regulation of Market- Collusion and Consumers
• Welfare
• Public Revenue: Tax & Non-Tax Revenue
• Direct & Indirect Taxes
• Progressive and non-Progressive Taxation
• Incidence and Effects of Taxation 
• Public expenditure
• Public Debt and its Management 
• Public Budget and Budget Multiplier
•  Tax Incidence
• Fiscal Policy and its Implications
• Environment as a Public Good
• Market Failure
• Coase Theorem
• Cost-Benefit Analysis.

• Regulation of Market- Collusion and Consumers
• Direct & Indirect Taxes
• Progressive and non-Progressive Taxation
• Incidence and Effects of Taxation 
• Public expenditure
• Public Debt and its Management 
• Public Budget and Budget Multiplier
•  Tax Incidence

6

Development of Economics

• Theories of Economic Development: Adam Smith, David Ricardo, Karl Marx, J.Schumpeter, W. Rostow 
• Balanced & Unbalanced Growth 
• Big Push Approach
• Indicators of Economic Development: HDI, SDGs, MDGs
• Poverty and Inequalities- Concepts and Measurement Issues
• Social Sector Development 
• Health
• Education
• Gender
• Fertility
• Morbidity
• Mortality
• Migration
• Child Labor
• Age Structure
• Demographic Dividend 
• Models of Economic Growth: Harrod-Domar, Solow. Ramsey
• Technical progress- Disembodied & Embodied
• Endogenous Growth Models.

• Big Push Approach
• Indicators of Economic Development: HDI, SDGs, MDGs
• Social Sector Development 
• Health
• Education
• Models of Economic Growth: Harrod-Domar, Solow. Ramsey

7

Indian Economy

• Economic Growth in India: Pattern and Structure
• Agriculture
• Industry & Services Sector: Pattern & Structure of Growth, Major Challenges
• Policy Responses
• Rural & Urban Development- Issues, Challenges & Policy Responses
• The flow of Foreign Capital
• Trade Policies
• Infrastructure Development: Physical and Social
• Public-Private Partnerships
• Reforms in Land
• Labour and Capital Markets
• Poverty
• Inequality & Unemployment
• The Functioning of Monetary Policy in India 
• Fiscal Policy in the Indian Context: Structure of Receipts and Expenditure
• Tax reforms-Goods and Services Tax
• Issues of Growth and Equity
• Fiscal Federalism
• Centre-State Financial Relations and Finance Commissions of India
• Sustainability of Deficits and Debt
• The Fiscal Responsibility and Budget Management Act 2003
• Demonetization and aftermath
• India’s balance of payments
• Composition of India’s Trade
• Competitiveness of India’s exports
• India’s exchange rate policy

• Policy Responses
• Rural & Urban Development- Issues, Challenges & Policy Responses
• The flow of Foreign Capital
• Tax reforms-Goods and Services Tax
• Issues of Growth and Equity
• The Fiscal Responsibility and Budget Management Act 2003
• Competitiveness of India’s exports
• India’s exchange rate policy

Reading Comprehension

General Aptitude

14

MCQ

(Multiple Choice Questions)

14 questions x 1 marks  = 14 marks

Expression

10

MCQ

(Multiple Choice Questions)

10 questions x 2 marks  = 20 marks

Analytical reasoning

4

MSQ

(Multiple Select Questions)

4 questions x 2 marks = 8 marks

Logical reasoning

6

NAT

(Numerical Answer Type)

6 questions x 1 marks = 6 marks

6

NAT

(Numerical Answer Type)

6 questions x 2 marks= 12 Marks

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