CA Foundation Economics (Paper 4)- Study Material, Syllabus 2022

Economics is a subject that majorly focuses on the capabilities of individuals as consumers or producers in the market and deals in finding solutions to their problems. It includes topics like basic problems of economy and market, price mechanism, the theory of demand and supply, production and cost, and business cycles.

ICAI has introduced Business Economics in the CA Foundation Exam with the objective of giving an added advantage to Chartered Accountants, who are more than accountants and auditors in the business fraternity. Chartered Accountants also provide Business Solutions, and the study of the market economy helps them provide better solutions.

Here in this article, we will share more information about CA Foundation Economics Paper.

Also read: Know why it is necessary to fill CA Foundation Exam form.

CA Foundation Economics Syllabus

CA Foundation Economics Syllabus with Marks Distribution in Question Paper

Paper 4: Business Economics and Business and Commercial Knowledge

This fourth paper of CA Foundation is further divided into two parts and many internal chapters:

Part 1 Business Economics

1Introduction to Business Economics15%-20%
2Theory of Demand and Supply35%-40%
3Theory of Production and Cost Price10%-20%
4Determination in Different Markets25%-30%
5Business Cycles15%-20%

Part 2 Business and Commercial Knowledge

1Introduction to Business15%-18%
2Business Environment15%-20%
3Business Organizations15%-18%
4Government Policies for Business Growth15%-18%
5Organizations Facilitating Business15%-18%
5Common Business Templates15%-18%

CA Foundation Economics Paper Weightage: Skill Assessment Specification

PaperLevel I Comprehension & KnowledgeLevel II Application
Paper 4 Part I: Business Economics40%-50%50%-60%
Paper 4 Part II: Business and Commercial Knowledge100%

Free Resources for CA Foundation Economics Paper

CA Foundation Economics Paper: Chapter-wise study material in English and Hindi

From here you can download the official and revised CA Foundation Economics notes and study material in pdf files. The CA Foundation Study Material also has MCQs at the end of the topic. You can practice them for quick revision after completing a topic.

Part 1 Business Economics

Chapter 1 Introduction to Business Economics

UnitsEnglish MediumHindi Medium
Unit 1 Nature and Scope of Business EconomicsDownloadDownload
Unit 2 Basic Problems of an EconomyDownloadDownload

Chapter 2 Theory of Demand and Supply

UnitsEnglish MediumHindi Medium
Unit 1 Law of Demand and Elasticity of DemandDownloadDownload
Unit 2 Theory of Consumer BehaviourDownloadDownload
Unit 3 SupplyDownloadDownload

Chapter 3 Theory of Production and Cost

UnitsEnglish MediumHindi Medium
Unit 1 Theory of ProductionDownloadDownload
Unit 2 Theory of CostDownloadDownload

Chapter 4 Meaning and Types of Markets

UnitsEnglish MediumHindi Medium
Unit 1 Meaning and Types of MarketsDownloadDownload
Unit 2 Determination of PricesDownloadDownload
Unit 3 Price Output Determination under Different Market FormsDownloadDownload

Chapter 5 Business Cycles

English MediumHindi Medium

Part 2 Business and Commercial Knowledge

UnitsEnglish MediumHindi Medium
Chapter 1: Introduction to Business and BCKDownloadDownload
Chapter 2: Business EnvironmentDownloadDownload
Chapter 3: Business OrganizationsDownloadDownload
Chapter 4: Government Policies for Business GrowthDownloadDownload
Chapter 5: Organizations Facilitating BusinessDownloadDownload
Chapter 6: Common Business TerminologiesDownloadDownload

Glossary for CA Foundation Economics Paper

The Economics subject involves various terms which have a particular meaning in correspondence to this particular subject. Situations like customer satisfaction point, availability of goods, purchases by customers, the shift in price of products due to different reasons, and number of brands or companies in a market for a single product have significant terms.

Therefore, ICAI has given a glossary of more than 50 terms which you can download from below links. It will help you understand the meaning of a term easily. You can go through it before starting a chapter and use it as a reference whenever needed.

Download Glossary in English

Download Glossary in Hindi

Self Examination Questions

Download Self Examination Questions and Answers in English

Download Self Examination Questions and Answers in Hindi

Mock Test Papers with Solutions for Paper 4 of CA Foundation

Below is the last year mock test paper given by ICAI for CA Foundation Economics Paper.

Download Mock Test Question Paper

Download Answer Keys

Besides this mock test paper, you should alsopractice previous year CA Foundation Papersand other mock test papers.

Essential Tips for CA Foundation Business Economics Exam

In between studying for hours, you need to create a plan for your subjects in time slots and follow sometips for CA Foundation Examthat will keep you energized and focused.

  1. Know about the exam pattern. Business Economics and Business and Commercial Knowledge is an objective type paper. The minimum passing marks for this subject is 40% of the total marks.
  2. Focus on which concept and formula fits in the best place. Concepts in Business Economics are interrelated to each other, you should understand what the question is asking before answering. For example, demand and supply are different concepts but are interrelated. When both are involved in a question, understand what it is that the examiner wants you to answer.
  3. This subject has numerical questions. SO you must focus on your calculation speed so that you have enough time for understanding the concept involved in the question.

Frequently Asked Questions

Q2. Is the ICAI Study Material sufficient for CA Foundation Business Economics paper?

Ans: The notes provided by ICAI are in-depth and cover every essential concept. However, if you are not clear with the concepts itself, you can join CA Coaching classes or attend online lectures for more guidance from expert teacher. If you have already covered everything from the ICAI study material, you can look for more reference books and knowledge base.

Q1. Is Business Economics a difficult subject for students who are from the Science or Humanities stream?

Ans: The CA Foundation Business Economics paper consist of the initial level concepts and formulas. Commerce students have an added advantage because they are cleared with the basics. But Science/Arts students can also easily pass in the paper once they have a clear understanding of concepts.

Q3. When is the Business Economics CA Foundation Paper 2022?

Ans: The next CA Foundation Business Economics Paper will be held on June 30, 2022.

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