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.
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CA Foundation Economics Syllabus
CA Foundation Economics Syllabus with Marks Distribution in Question Paper
Paper 4: Business Economics
This fourth paper of CA Foundation is further divided into two parts and many internal chapters:
Part 1 Business Economics
| Chapter | Topics | Weightage |
|---|---|---|
| 1 | Introduction to Business Economics | 15%-20% |
| 2 | Theory of Demand and Supply | 35%-40% |
| 3 | Theory of Production and Cost Price | 10%-20% |
| 4 | Determination in Different Markets | 25%-30% |
| 5 | Business Cycles | 15%-20% |
Part 2 Business and Commercial Knowledge
| Chapter | Topics | Weightage |
|---|---|---|
| 1 | Introduction to Business | 15%-18% |
| 2 | Business Environment | 15%-20% |
| 3 | Business Organizations | 15%-18% |
| 4 | Government Policies for Business Growth | 15%-18% |
| 5 | Organizations Facilitating Business | 15%-18% |
| 5 | Common Business Templates | 15%-18% |
CA Foundation Economics Paper Weightage: Skill Assessment Specification
| Paper | Level I Comprehension & Knowledge | Level II Application |
|---|---|---|
| Paper 4 Part I: Business Economics | 40%-50% | 50%-60% |
| Paper 4 Part II: Business and Commercial Knowledge | 100% | – |
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
| Units | English Medium | Hindi Medium |
|---|---|---|
| Unit 1 Nature and Scope of Business Economics | Download | Download |
| Unit 2 Basic Problems of an Economy | Download | Download |
Chapter 2 Theory of Demand and Supply
Chapter 3 Theory of Production and Cost
| Units | English Medium | Hindi Medium |
|---|---|---|
| Unit 1 Theory of Production | Download | Download |
| Unit 2 Theory of Cost | Download | Download |
Chapter 4 Meaning and Types of Markets
| Units | English Medium | Hindi Medium |
|---|---|---|
| Unit 1 Meaning and Types of Markets | Download | Download |
| Unit 2 Determination of Prices | Download | Download |
| Unit 3 Price Output Determination under Different Market Forms | Download | Download |
Chapter 5 Business Cycles
Part 2 Business and Commercial Knowledge
| Units | English Medium | Hindi Medium |
|---|---|---|
| Chapter 1: Introduction to Business and BCK | Download | Download |
| Chapter 2: Business Environment | Download | Download |
| Chapter 3: Business Organizations | Download | Download |
| Chapter 4: Government Policies for Business Growth | Download | Download |
| Chapter 5: Organizations Facilitating Business | Download | Download |
| Chapter 6: Common Business Terminologies | Download | Download |
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.
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
Besides this mock test paper, you should also practice previous year CA Foundation Papers and 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 some tips for CA Foundation Exam that will keep you energized and focused.
- 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.
- 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.
- 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 2024?
Ans: The next CA Foundation Business Economics Paper will expected to be held on June 26, 2024.
Commencement of Live Virtual Classes (LVC Batch – 2) under the New Scheme from 15th April 2024 for the students of CA Foundation/Intermediate/Final courses appearing in September/November 2024 Examinations – (10-04-2024)