SSC CGL Tier-2 | Economics Notes

Dear Students,

SSC CGL TIER 2 Exam is just a month away from now on. To let all the aspirants remind a smart strategy to come across Tier 2 containing  Paper-1 (Quantitative Abilities) and Paper-2 (English Language and Comprehension) which are compulsory for all candidates, and Paper-3 (Statistics), Paper-4 (General Studies Finance & Economics) which are optional, ADDA247 is all set once again to lead you ahead  making a progression to the summit of your career.

We already have provided a planned strategy for Paper 1, 2 and 3 in order to leave behind your doubts and hesitation. Today we are providing a planned strategy for Paper 4 of CGL Tier 2 Exam which is to be held from 18 Jan to 20 Jan 2018. Paper IV is only for those candidates who apply for the post of Assistant Audit Officer (AAO). Assistant Audit Officer (AAO) in CAG through SSC CGL Exam is one of the most sought after posts advertised from 2016 onward. Since this is a gazetted post, it requires some specialized knowledge and skill of Accounts & Finance. So, Paper 4 General Studies (Finance and Economics) has been added to test the important knowledge required for the job.Paper 4 consists of Finance and Accounting holding 40 questions for 80 marks and Economics and Governance holding 60 questions for 120 marks, concluding 200 marks for Paper4. 

For Accountancy, follow Class 11th NCERT book for the subject. It has covered 90–95 % of the syllabus of accounts part. The level of topics is of graduation level. The aspirants are advised to first clear the basic concepts and then move to the advanced level of a particular topic. The knowledge of topics is a must for the preparation of AAO paper. 

Some chapters from the Syllabus of Finance and Accounting are:

Bills of Exchange,Generally Accepted Accounting Principles,Profit & loss Appropriation Accounts -Concept and Numerical questions, Balance Sheet Distinction between Capital and Revenue Expenditure, Depreciation Accounting – Concept and Numerical questions,Law of demand and Elasticity of demand, Price, income and cross elasticity; Nature and scope of Financial Accounting, Limitations of Financial Accounting, Basic concepts and Conventions, Generally Accepted Accounting Principles, Single and double entry- Concept and Numerical questions, Books of original Entry – Concept and Numerical questions.

Read all the important topics as per syllabus given above and solve MCQ given at the end of each chapter. Don’t go in depth of any topics. Cover the basic definition and characteristics. Don’t skip numerical questions in accounting.

In accounting, understanding rectification of error might be an achilles heel of the students of non-accounting background. Thus try to have at least basic understanding of this chapter. After covering above-listed topics start taking mock tests. Some important topics you need to be aware of include: 
1. Cash Management
2. Corporate Finance
3. Book Keeping
4. Balance Sheet
5. Cash Flow and Fund Flow
6. Assets and Liabilities
7. Share and Debentures
8. Working Capital
When it comes to the aspirants of non- commerce background, going through the above topics, learning definitions and apt theoretical knowledge of the important terms will be really alleviating. Include Revision work in your schedule and appear for online mock tests. There is no need to be anxious as the lion’s share will be of basic level.


The Syllabus includes following chapters:
Nature of the Indian Economy Role of different sectors, Role of Agriculture, Industry and Services-their problems and growth, National Income of India-Concepts of national income, Different methods of measuring national income, Economic reforms since 1991; Liberalization, Monetary/ Fiscal policy- Role and functions of Reserve Bank of India; functions of commercial Banks/RRB/Payment Banks,Budget and Fiscal deficits and Balance of payments, Fiscal Responsibility and Budget Management Act, 2003.etc . Finance Commission, Basic Concept of Economics and introduction to Micro Economics.
Some important topics you need to study ins and out are as follows:
1. Comptroller & Auditor General of India
2. Finance Commission
3. Basic Concept of Economics and introduction to Micro Economics (Micro Economics)
4. Theory of Demand and Supply (Micro Economics)
5. Theory of Production and cost (Micro Economics)
6. Forms of Market and price determination in different markets (Micro Economics)
7. Indian Economy (Macro Economics)
8. Economic Reforms in India (Macro Economics)
9. Money and Banking (Macro Economics)

In Microeconomics give more emphasis on understanding graphs related concepts ( for e.g. graph on Marginal cost, Shut down point, demand and supply, monopoly, oligopoly, monopolistic, perfect competition curve in short as well as long run, PPC, budget line, IC etc.)

To approach this section you should:
1. Start with the NCERT books for Accounts & Economics (Class 11th & 12th). For covering the Micro & Macro Economics portion, these books are very beneficial.
2. In 2016 paper, we saw that the paper level of this exam was easy to moderate which requires mainly basic and conceptual knowledge of these topics. So, please focus mainly on Basic concepts.
3. Practise the Last year paper and quizzes based on that on
4. For Micro, you should focus on learning the concepts with the help of graph. This will make your understanding easy.
5. Focus on Numericals in both Economics and Accountancy.
6. Make short notes of all the topics for an effective revision later on.
7. Practise as many questions as you can.

While preparing for the Tier- 2 exam, try to cover the syllabus of Paper 3 and Paper 4 also. Avoid ignoring the importance of covering these topics. Therefore it is an expert advice that you should try to manage time for these topics and revision of the important terms, definitions will help you in bringing the required agility and pace while writting the exam.

Keep Studying with ADDA247. 



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