IIT JAM Economics the second-most important exam, after CUET PG Economics Exam, for candidates preparing for MA Economics entrance exams. Clearing the IIT JAM Economics Exam opens doors to prestigious MSc programs at top IITs (Indian Institutes of Technology) and MA Economics degree from IITs enhances research opportunities, and strengthens career prospects in academia, government (viz.,Indian Economic Service, RBI DEPR Exam)), and corporate sector.
Topics listed in IIT JAM Economics Syllabus form the basis of IIT JAM Economics Exam. Mastering the IIT JAM Economics Syllabus is crucial for securing a top rank in the exam, as it ensures comprehensive coverage of IIT JAM Economics Syllabus key topics like Microeconomics, Macroeconomics, and Statistics—eliminating surprises and boosting confidence for high-score performance.
The IIT JAM Economics Syllabus comprehensively covers Microeconomics (consumer theory, production theory, market structures, general equilibrium, game theory, etc.), Macroeconomics (national income, inflation, growth models, Open Economy models, Consumption function and investment function), Statistics & Econometrics (probability theory, probability distributions, correlation and regression analysis), and Mathematical Methods (calculus, linear algebra, optimization, etc.). Additionally, IIT JAM Economics includes Indian Economy (growth, development policies).
IIT JAM Economics Microeconomics
IIT JAM Syllabus of Microeconomics covers Consumer Theory, Theory of Production and Cost, General Equilibrium and Welfare, Market Structure, Game Theory , Public Goods and Market Failure
Consumer Theory
Preference, utility and representation theorem, budget constraint, choice, demand (ordinary and compensated), Slutsky equation, revealed preference axioms
Theory of Production and Cost
Production technology, isoquants, production function with one and more inputs, returns to scale, short run and long run costs, cost curves in the short run and long run
General Equilibrium and Welfare
Equilibrium and efficiency under pure exchange and production, welfare economics, theorems of welfare economics
Market Structure
Perfect competition, monopoly, pricing with market power, price discrimination (first, second and third), monopolistic competition and oligopoly
Game Theory
Strategic form games, iterated elimination of dominated strategies, Nash equilibrium, mixed extension and mixed strategy Nash equilibrium, examples: Cournot, Bertrand duopolies, Prisoner’s dilemma
Public Goods and Market Failure
Externalities, public goods and markets with asymmetric information (adverse selection and moral hazard
IIT JAM Economics Macroeconomics
IIT JAM Economics Syllabus of Macroeconomics covers National Income Accounting, Consumption Functions, Investment Functions, Business Cycles and Economic Models (closed economy and Open Economy), Inflation and Unemployment , Growth Models
National Income Accounting
Structure, key concepts, measurements, and circular flow of income – for closed and open economy, money, fiscal and foreign sector variables – concepts and measurements
Consumption Functions
Absolute income hypothesis, life-cycle and permanent income hypothesis, random walk model of consumption
Investment Functions
Keynesian, money demand and supply functions, production function
Business Cycles and Economic Models (closed economy)
Business cycles-facts and features, the Classical model of the business cycle, the Keynesian model of the business cycle, simple Keynesian cross model of income and employment determination and the multiplier (in a closed economy), IS-LM Model, Hicks’ IS-LM synthesis, role of monetary and fiscal policies
Business Cycles and Economic Models (Open Economy)
Open economy, Mundell-Fleming model, Keynesian flexible price (aggregate demand and aggregate supply) model, role of monetary and fiscal policies
Inflation and Unemployment
Inflation – theories, measurement, causes, and effects, unemployment – types, measurement, causes, and effect
Growth Models
Harrod-Domar, Solow and Neo-classical growth models (AK model, Romer model and Schumpeterian growth model)
IIT JAM Economics Syllabus Statistics for Economics
IIT JAM Economics Syllabus of Statistics covers Probability Theory, Mathematical Statistics, Hypothesis Testing, Correlation and Regression
Probability Theory
Sample space and events, axioms of probability and their properties, conditional probability and Bayes’ rule, independent events, random variables and probability distributions, expectation, variance and higher order moments, functions of random variables, properties of commonly used discrete and continuous distributions, density and distribution functions for jointly distributed random variables, mean and variance of jointly distributed random variables, covariance and correlation coefficients
Mathematical Statistics
Random sampling, types of sampling, point and interval estimation, estimation of population parameters using methods of moments and maximum likelihood procedures, properties of estimators, sampling distribution, confidence intervals, central limit theorem, law of large number
Hypothesis Testing
Distributions of test statistics, testing hypotheses related to population parameters, Type I and Type II errors, the power of a test, tests for comparing parameters from two samples
Correlation and Regression
Correlation and types of correlation, the nature of regression analysis, method of Ordinary Least Squares (OLS), CLRM assumptions, properties of OLS, goodness of fit, variance and covariance of OLS estimator
IIT JAM Economics Syllabus Indian Economy
Indian Economy Before 1950
Transfer of tribute, deindustrialization of India
Planning and Indian Development
Planning models, relation between agricultural and industrial growth, challenges faced by Indian planning
Indian Economy After 1991
Balance of payments crisis in 1991, major aspects of economic reforms in India after 1991, reforms in trade and foreign investment
Banking, Finance and Macroeconomic Policies
Aspects of banking in India, CRR and SLR, financial sector reforms in India, fiscal and monetary policy, savings and investment rates in India
Inequalities in Social Development
India’s achievements in health, education and other social sectors, disparities between Indian States in human development
Poverty
Methodology of poverty estimation, Issues in poverty estimation in India
India’s Labour Market
Unemployment, labour force participation rates
IIT JAM Economics Syllabus Mathematics for Economics
Preliminaries and Functions
Set theory and number theory, elementary functions: quadratic, polynomial, power, exponential, logarithmic, functions of several variables, graphs and level curves, convex set, concavity and quasi-concavity of function, convexity and quasi-convexity of functions, sequences and series: convergence, algebraic properties and applications, complex numbers and its geometrical representation, De Moivre’s theorem and its application
Differential Calculus
Limits, continuity and differentiability, mean value theorems, Taylor’s theorem, partial differentiation, gradient, chain rule, second and higher order derivatives: properties and applications, implicit function theorem, and application to comparative statics problems, homogeneous and homothetic functions: Characterisations and applications
Integral Calculus
Definite integrals, fundamental theorems, indefinite integrals and applications
Differential equations, and Difference Equations
First order difference equations, first order differential equations and applications
Linear Algebra
Matrix representations and elementary operations, systems of linear equations: properties of their solution, linear independence and dependence, rank, determinants, eigenvectors and eigenvalues of square matrices, symmetric matrices and quadratic forms, definiteness and semi-definiteness of quadratic forms
Optimization
Local and global optima: geometric and calculus-based characterisations, and applications, multivariate optimization, constrained optimization and method of Lagrange multiplier, second order condition of optima, definiteness and optimality, properties of value function: envelope theorem and applications, linear programming: graphical solution, matrix formulation, duality, economic interpretation.
IIT JAM Economics Exam Pattern
IIT JAM Economics Exam Pattern consists of a 3-hour computer-based test with 100 marks divided into three sections: Section A (30 MCQs with negative marking), Section B (10 MSQs with no negative marking), and Section C (20 NAT questions). The exam tests core areas like Microeconomics, Macroeconomics, Statistics, and Mathematical Economics through multiple-choice, multiple-select, and numerical answer-type questions. Understanding the IIT JAM Economics exam pattern is crucial for strategic preparation, especially focusing on high-weightage topics.
| Aspect | Details |
|---|---|
| Exam Mode | Computer-Based Test (CBT) |
| Duration | 3 hours (180 minutes) |
| Number of Questions and Total Marks | 60 Questions in Total for 100 Marks (Section-A: 50 Marks, Section-B : 20 Marks , Section-C: 30 Marks) |
| Sections | Section A (MCQs) – 30 Qs (10 Qs of 1-Mark each and 20 Qs of 2-Mark each) Section B (Multiple Select Questions) – 10 Qs (2 marks each) Section C (Numerical Answer Type) – 20 Qs (10 Qs of 1-mark each or 10 Qs of 2-marks each) |
| Marking Scheme | Section A: -0.33 negative marking (per wrong answer) for 1-Mark Questions and 0.66 Marks for 2 Mark Questions Sections B :& C: No negative marking |
| Question Types | MCQs (Single Correct), MSQs (Multiple Select Questions), NATs (Numerical Answer Type) |
| Syllabus Coverage | Microeconomics, Macroeconomics, Statistics, Mathematical Economics, Indian Economy |
- IIT JAM Economics exam consists of a total of 60 questions carrying 100 marks.
- The entire IIT-JAM Economics is divided into three sections: A, B and C. All sections are compulsory. Questions in
each section are of different types. - Section A of IIT JAM Economics Exam contains a total of 30 Multiple Choice Questions (MCQ). Each MCQ type question has four choices out of which only one choice is the correct answer. Questions Q.1 – Q.30 belong to this section and carry a total of 50 marks. Q.1 – Q.10 carry 1 mark each and Questions Q.11 -Q.30 carry 2 marks each.
- Section B contains a total of 10 Multiple Select Questions (MSQ). Each MSQ type question is
similar to MCQ but with a difference that there will be more than one choices that are correct out of the four given choices. The candidate gets full credit if he/she selects all the correct answers only and no wrong answers. Questions Q.31 -Q.40 belong to this section and carry 2 marks each with a
total of 20 marks. - Section C contains a total of 20 Numerical Answer Type (NAT) questions. For these NAT type
questions, the answer is a real number which needs to be entered using the virtual keyboard on the
monitor. No choices will be shown for these type of questions. Questions Q.41 – Q.60 belong to
this section and carry a total of 30 marks. Q.41 – Q.50 carry 1 mark each and Questions Q.51-
Q.60 carry 2 marks each. - Negative Marking in IIT JAM Economics Exam: In all sections, questions not attempted will result in zero mark.
- In Section A (MCQ), wrong answer will result in NEGATIVE marks. For all 1-mark questions, 1/3 marks will be deducted for each wrong answer. For all 2-mark questions, 2/3 marks will be deducted for each wrong answer.
- In Section B (MSQ), there is NO NEGATIVE and NO PARTIAL marking provisions. There is NO
NEGATIVE marking in Section C (NAT) as well.
- Only Virtual Scientific Calculator is allowed. Charts, graph sheets, tables, cellular phone or other
electronic gadgets are NOT allowed in the examination hall.
IIT JAM Economics Dates
IIT JAM Economics exam is typically held in early February each year. For 2025, the IIT JAM Economics exam is scheduled for February 2, 2025, in the afternoon session.
Preparing seriously for MA Economics entrance exams, such as CUET PG Economics, IIT JAM Economics, ISI MSQE Exam, is a strategic investment that can transform your academic and professional trajectory. While a few students attempt these competitive examinations without adequate preparation, the advantages of thorough preparation far outweigh the perceived convenience of casual attempts.
MA Economics entrance exams including DSE, JNU, ISI, IGIDR, and other prestigious university examinations are highly competitive, with acceptance rates often below 5%. These examinations test advanced economic concepts, mathematical proficiency, and analytical reasoning that require months of dedicated preparation to master effectively.
1. Significantly Higher Success Rates
Students who prepare seriously for MA Economics entrance exams achieve success rates that are 300-400% higher than unprepared candidates. Thorough preparation ensures comprehensive coverage of syllabus topics, better time management during exams, and confidence in tackling complex economic problems.
2. Access to Premier Economics Programs
Serious preparation opens doors to India’s top economics programs including:
- Delhi School of Economics (DSE)
- Jawaharlal Nehru University (JNU)
- Indian Statistical Institute (ISI)
- Indira Gandhi Institute of Development Research (IGIDR)
- Madras School of Economics (MSE)
These institutions offer superior faculty, research opportunities, and placement prospects that significantly impact career trajectories.
3. Stronger Conceptual Foundation
MA Economics entrance exam preparation builds a robust theoretical foundation in:
- Advanced microeconomic theory
- Macroeconomic models and policies
- Mathematical economics and optimization
- Econometrics and statistical analysis
- Development economics and public finance
This comprehensive understanding becomes invaluable during graduate studies and professional practice.
4. Enhanced Problem-Solving Skills
Rigorous preparation develops critical analytical skills essential for economics:
- Mathematical modeling of economic phenomena
- Data interpretation and statistical analysis
- Policy analysis and evaluation techniques
- Research methodology and academic writing
- Quantitative reasoning for complex economic problems
5. Better Career Prospects and Salary Potential
Graduates from top MA Economics programs command significantly higher starting salaries:
Average Starting Salaries:
- Top-tier MA Economics programs: ₹8-15 lakhs per annum
- Mid-tier programs: ₹4-8 lakhs per annum
- Lower-tier programs: ₹2-5 lakhs per annum
Career Opportunities:
- Economic research organizations
- Investment banks and financial institutions
- Government economic departments
- International organizations (World Bank, IMF)
- Corporate strategy and consulting roles