CA Foundation Business Economics Syllabus 2026: Check Total Marks

CA Foundation Exam Pattern 2026: Overview

Objective of the CA Foundation Business Economics Paper:

It is a priority of the CA Foundation business economics paper to develop an understanding of the concepts and theories of economics and also to acquire the ability to address application-oriented issues.

CA Foundation 2026 Syllabus

Detailed CA Foundation Business Economics Syllabus

Candidates should note that every chapter included in the CA Foundation Business Economics 2026 syllabus is important. It is essential to thoroughly review each topic to achieve good results in the CA Foundation exam. Below are all the chapters and their respective topics for the CA Foundation business economics syllabus as per the CA Foundation syllabus introduced by the ICAI.

Chapter 1: Introduction to Business Economics

• Meaning and scope of Business Economics

• Basic Problems of an Economy and Role of Price Mechanism.

Chapter 2. 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

(A) Macro Economic Aggregates and Measurement of National Income

(B) 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

(A) Fiscal functions: An Overview, Centre and State Finance

(B) Market Failure/ Government intervention to correct market failure.

(C) Process of budget making: Sources of Revenue, Expenditure Management, and Management of Public Debt.

(D) Fiscal Policy

Chapter 8: Money Market

(A)Concept of Money Demand

(B) Important theories of Demand for Money

(C) Concept of Money Supply, Cryptocurrency and other new terminology

(D) Monetary Policy

Chapter 9: International Trade

(A) Theories of International Trade including theories of intra-industry trade by Krugman.

(B) Trade Policy – The Instruments of Trade Policy

(C) Trade Negotiations

(D) Exchange Rates and its economic effects

(E) International Capital Movements: Foreign Direct Investment

Chapter 10: Indian Economy

• (Before 1950- Chanakya and Nand Vansh, OECD Paper (1950-1991),

• Basic knowledge 1991 Onwards