BBA 107 Business Economics Notes from Unnati Educations cover all 4 units of the GGSIPU BBA Semester 1 paper in a 79-page book: 56 exam questions with answers (32 short answers, 24 long-answer outlines), 16 solved numericals, 4 worked illustrations and 25 labelled diagrams. They follow the NEP scheme for batches from academic session 2024-25.
Written by Prateek Talwar, Founder, Unnati Educations (ACS, ICSI) · Checked against GGSIPU BBA Scheme and Syllabus (NEP based), w.e.f. 2024-25 · Updated 13 October 2026 · Editorial policy
Scheme: NEP based BBA scheme, w.e.f. 2024-25 | Applies to: batches from academic session 2024-25 | Verified against: BBAwef2024_25_200125.pdf (ipu.ac.in)
BBA 107 Business Economics at a glance: GGSIPU BBA Sem 1 credits, units and exam pattern
BBA 107 is the inter-disciplinary (minor) paper of the BBA first semester, studied with seven other GGSIPU BBA Semester 1 papers.
| Paper | BBA 107 Business Economics (BBA-107 on the notes cover) |
|---|---|
| Category and credits | Inter-disciplinary Course / Minor · 4 credits · L-4, T-0 |
| Marks | 100: 40 internal (class test 15 + activities 25) + 60 end-term |
| Applies to | Batches from academic session 2024-25 |
| End-term pattern | 60 marks; question pattern not printed in the official PDFs |
| Exam duration | 3 hours |
| Units | 4 units, 15 teaching hours each |
| Pass rules | Not printed in the BBA scheme; see GGSIPU Ordinance 11 |
| Paired lab | None (theory-only paper) |
Its course outcomes stress demand, capacity utilisation and pricing in different market forms, so 10 of the 16 numericals sit in Units 2 and 3.
BBA 107 Business Economics Notes unit-wise: 16 solved numericals and 56 exam questions across 4 units
Each unit ends with formulas, common mistakes, questions with answers and a revision table. Notes for every other paper of the course are under GGSIPU BBA notes.
The official PDF gives units no titles, so the names below come from these Business Economics notes in English. The sample PDF in the header shows one page per unit.
BBA 107 Unit 1: Business Economics and Consumer Behaviour
Pages 5 to 24, 22 sections. Part A covers the definitions, nature and scope of Business Economics, micro versus macro, opportunity cost, marginalism, incrementalism and behavioural economics. Part B covers diminishing and equi-marginal utility, indifference curves, MRS, the budget line and consumer equilibrium. Count: 1 numerical, 4 worked illustrations, 7 diagrams, 13 questions.
Quick look: equi-marginal utility on an income of Rs 22 (from pages 15 and 16)
- Px = Rs 2, Py = Rs 4. MU per rupee equals 6 for both at 5 units of X and 3 of Y.
- Spending: (5 × 2) + (3 × 4) = Rs 22, the full income.
- Total utility 164 utils; shifting Rs 4 from Y to X loses 24 utils and gains only 18.
BBA 107 Unit 2: Demand, Production and Cost Analysis
Pages 25 to 45, 21 sections. It covers the law of demand, price elasticity by four methods, income, cross and advertising elasticity, demand forecasting, the law of variable proportions, returns to scale on isoquants, cost concepts and economies of scale. Count: 6 numericals, 7 diagrams, 15 questions.
| Output | AVC (Rs) | ATC (Rs) | MC (Rs) |
|---|---|---|---|
| 3 | 30 | 50 | 20 |
| 4 | 30 | 45 | 30 |
| 5 | 34 | 46 | 50 |
| 6 | 40 | 50 | 70 |
Quick look: short-run costs with TFC of Rs 60 (from page 38)
- Output
- 3
- AVC (Rs)
- 30
- ATC (Rs)
- 50
- MC (Rs)
- 20
- Output
- 4
- AVC (Rs)
- 30
- ATC (Rs)
- 45
- MC (Rs)
- 30
- Output
- 5
- AVC (Rs)
- 34
- ATC (Rs)
- 46
- MC (Rs)
- 50
- Output
- 6
- AVC (Rs)
- 40
- ATC (Rs)
- 50
- MC (Rs)
- 70
BBA 107 Unit 3: Price and Output Decisions
Pages 46 to 61, 19 sections. It covers perfect competition and the shut-down rule, monopoly and its control, price discrimination, monopolistic competition with excess capacity, Cournot's duopoly and Sweezy's kinked demand curve. Count: 4 numericals, 8 diagrams, 14 questions.
Quick look: monopoly equilibrium (from page 51)
- P = 100 − 2Q, TC = 200 + 20Q, so MC = 20 and MR = 100 − 4Q.
- MR = MC gives Q = 20 and P = Rs 60.
- Profit = 1,200 − 600 = Rs 600; a competitive industry would sell 40 units at Rs 20.
BBA 107 Unit 4: Macro Economics and National Income
Pages 62 to 78, 13 sections. It covers macro variables with Indian measures (CPI, WPI, repo rate), inflation, unemployment, real GDP, national income aggregates and the three measurement methods. Count: 5 numericals, 3 diagrams, 14 questions.
| Aggregate | Working | Value |
|---|---|---|
| GNP at MP | 5,000 + NFIA 50 | 5,050 |
| NNP at MP | 5,050 − depreciation 400 | 4,650 |
| NNP at FC | 4,650 − net indirect taxes 500 | 4,150 |
Quick look: GDP to national income, Rs crore (from page 71)
- Aggregate
- GNP at MP
- Working
- 5,000 + NFIA 50
- Value
- 5,050
- Aggregate
- NNP at MP
- Working
- 5,050 − depreciation 400
- Value
- 4,650
- Aggregate
- NNP at FC
- Working
- 4,650 − net indirect taxes 500
- Value
- 4,150
BBA 107 exam corner: 32 short-answer questions and 24 long-answer outlines by unit
No marks are printed against questions. Short answers are written in full; long answers are outlines.
| Unit | Short | Long outlines | Numericals |
|---|---|---|---|
| 1 | 8 | 5 | 1 + 4 illustrations |
| 2 | 8 | 7 | 6 |
| 3 | 8 | 6 | 4 |
| 4 | 8 | 6 | 5 |
BBA 107 notes: questions and numericals per unit
- Unit
- 1
- Short
- 8
- Long outlines
- 5
- Numericals
- 1 + 4 illustrations
- Unit
- 2
- Short
- 8
- Long outlines
- 7
- Numericals
- 6
- Unit
- 3
- Short
- 8
- Long outlines
- 6
- Numericals
- 4
- Unit
- 4
- Short
- 8
- Long outlines
- 6
- Numericals
- 5
The BBA 107 notes solve 32 short-answer questions and outline 24 long answers across 4 units, plus 16 numericals worked step by step.
- Unit 1: What is MRS? Why does it diminish? (page 22) Y given up for one more X on the same curve; X loses value as it becomes plentiful.
- Unit 2: Price rises from Rs 20 to Rs 25, demand falls from 400 to 280. Find Ep. (page 43) 30% ÷ 25% = 1.2; outlay falls from Rs 8,000 to Rs 7,000, so elastic.
- Unit 3: Why does a monopolist avoid the inelastic part of demand? (page 60) MR = MC needs positive MR, which exists only where elasticity exceeds one.
- Unit 4: What is double counting? (page 76) Wheat counted in flour and again in bread; count only final goods or value added.
More practice sits in the BBA 107 important questions.
Leakages and injections in macro economics: excerpt from page 65 of the BBA 107 notes
Excerpt from page 65
Households supply factor services to firms and receive factor income in return. In the simplest two-sector model they spend all of that income on the goods firms produce, and the firms' receipts become payments to the factors once again. The flow goes round without a break, income equals consumption (Y = C) and the economy is in equilibrium.
Two-sector model with saving and investment
In reality households save a part of their income. Saving is a leakage because it takes money out of the flow. Savings reach the financial market, that is banks and the stock market, which lends them to firms for investment. Investment is an injection that puts money back into the flow. Equilibrium needs saving to equal investment (S = I). If saving is greater than investment, income falls; if investment is greater than saving, income rises.
Three-sector model: adding the government
The government collects taxes (T) from households and firms, which is a leakage, and spends on goods, services, subsidies and transfer payments (G), which is an injection. The equilibrium condition becomes S + T = I + G.
Four-sector model: adding the rest of the world
In an open economy, imports (M) take money out of the domestic flow and exports (X) bring money in. The full equilibrium condition is that total leakages equal total injections, S + T + M = I + G + X, which is the same as Y = C + I + G + (X − M).
| Leakage (withdrawal) | Matching injection |
|---|---|
| Savings (S) | Investment (I) |
| Taxes (T) | Government spending (G) |
| Imports (M) | Exports (X) |
Leakages and injections in the circular flow (page 65)
- Leakage (withdrawal)
- Savings (S)
- Matching injection
- Investment (I)
- Leakage (withdrawal)
- Taxes (T)
- Matching injection
- Government spending (G)
- Leakage (withdrawal)
- Imports (M)
- Matching injection
- Exports (X)
When injections are greater than leakages, income rises; when leakages are greater, income falls; when the two are equal, income is in equilibrium. This is why a government raises its spending during a recession: the extra injection lifts income back up.
Do the BBA 107 notes cover the full GGSIPU syllabus?
Yes. Every BBA 107 topic in Units I to IV of the official scheme has its own section in the notes; the unit check found no gaps.
| Unit | Official topics (shortened) | In the notes | Status |
|---|---|---|---|
| I | Business Economics basics; opportunity cost, marginalism, incrementalism; equilibrium; behavioural economics | 1.1 to 1.11, pages 5 to 12 | Covered |
| I | Cardinal and ordinal utility; MRS; budget line; consumer equilibrium | 2.1 to 2.11, pages 13 to 20 | Covered |
| II | Demand; elasticity and its measurement; demand forecasting | 2.1 to 2.11, pages 25 to 32 | Covered |
| II | Production function; variable proportion; returns to scale; cost; economies of scale | 3.1 to 4.5, pages 33 to 40 | Covered |
| III | Perfect competition; monopoly and its control; price discrimination | 5.0 to 7.2, pages 46 to 53 | Covered |
| III | Monopolistic competition; oligopoly (Cournot, kinked demand) | 8.1 to 9.3, pages 54 to 58 | Covered |
| IV | Macro variables, circular flow, inflation, unemployment, GDP | 10.1 to 10.7, pages 62 to 69 | Covered |
| IV | National income: concepts, methods, India, problems, precautions | 11.1 to 11.6, pages 70 to 75 | Covered |
BBA 107 official topics mapped to the notes
- Unit
- I
- Official topics (shortened)
- Business Economics basics; opportunity cost, marginalism, incrementalism; equilibrium; behavioural economics
- In the notes
- 1.1 to 1.11, pages 5 to 12
- Status
- Covered
- Unit
- I
- Official topics (shortened)
- Cardinal and ordinal utility; MRS; budget line; consumer equilibrium
- In the notes
- 2.1 to 2.11, pages 13 to 20
- Status
- Covered
- Unit
- II
- Official topics (shortened)
- Demand; elasticity and its measurement; demand forecasting
- In the notes
- 2.1 to 2.11, pages 25 to 32
- Status
- Covered
- Unit
- II
- Official topics (shortened)
- Production function; variable proportion; returns to scale; cost; economies of scale
- In the notes
- 3.1 to 4.5, pages 33 to 40
- Status
- Covered
- Unit
- III
- Official topics (shortened)
- Perfect competition; monopoly and its control; price discrimination
- In the notes
- 5.0 to 7.2, pages 46 to 53
- Status
- Covered
- Unit
- III
- Official topics (shortened)
- Monopolistic competition; oligopoly (Cournot, kinked demand)
- In the notes
- 8.1 to 9.3, pages 54 to 58
- Status
- Covered
- Unit
- IV
- Official topics (shortened)
- Macro variables, circular flow, inflation, unemployment, GDP
- In the notes
- 10.1 to 10.7, pages 62 to 69
- Status
- Covered
- Unit
- IV
- Official topics (shortened)
- National income: concepts, methods, India, problems, precautions
- In the notes
- 11.1 to 11.6, pages 70 to 75
- Status
- Covered
Official source: BBA Scheme and Syllabus (NEP based), w.e.f. 2024-25, on ipu.ac.in.
Every course in GGSIPU notes is mapped to its official PDF the same way.
Who writes and checks the BBA 107 economics notes?
- Prateek Talwar, author of the BBA 107 notes. Founder, Unnati Educations. Associate Company Secretary (ACS), ICSI, since 2019; B.Com, University of Delhi. Author profile
The 2026-27 edition includes the 2022-23 national income base year (page 74) and the RBI inflation target (page 66). Last updated 13 October 2026. See our editorial policy.
The same team prepares GGSIPU important questions from the same unit maps used for Business Economics.
BBA 107 and the GGSIPU BBA Sem 1 papers it connects to
BBA 107 has no lab paper; all courses and credits are on the GGSIPU BBA syllabus page.
It runs alongside BBA 101 Management Process and Organizational Behaviour, BBA 103 Business Mathematics, BBA 105 Financial Accounting and Analysis, BBA 109 Entrepreneurial Mindset, BBA 111 Life Skills and Personality Development, BBA 113 IT Applications in Business and BBA 115 IT Applications in Business Lab.
- BBA 103 Unit III (optimisation) → BBA 107 Units 2 and 3: MC = dTC/dQ, MR = MC and the Cournot reaction functions (page 57).
- BBA 105 Unit III (depreciation) → BBA 107 Unit 4: NNP = GNP − depreciation (page 71).
- BBA 105 accounting profit → BBA 107 Unit 2: explicit, implicit and economic cost (page 37).
How to write BBA 107 answers: distinguish tables, labelled diagrams and step-wise numericals
BBA 107 answers come in three shapes, and the notes coach each one. A "distinguish" question, such as Business Economics versus Economics or perfect competition versus monopoly, should be a table of at least six or seven bases closed with one summary line, as the tip on page 7 advises.
A theory answer in Units 1 and 3 is built round a diagram. The page 18 tip proves that two indifference curves cannot cross by drawing them, marking the common point A and points B and C, and showing the contradiction. The page 59 tip says a kinked demand answer needs the kink, the gap in MR and two MC curves passing through that gap, then one closing line on why oligopoly prices stay rigid.
A numerical needs the formula first, then each step on its own line, then a one-line reading of what the result means for the firm.
Worked example (page 53)
- Question: a monopolist sells in two markets with MC = Rs 30. Elasticity is 3 in market A and 1.5 in market B. Find the prices.
- Formula: P = MC × e / (e − 1).
- Market A: 30 × 3 / 2 = Rs 45. Market B: 30 × 1.5 / 0.5 = Rs 90.
- Reading: the less elastic market B pays double the price of market A.
The common-mistakes boxes flag slips that cost marks: writing that TU is highest when MU is highest (it peaks when MU = 0), placing consumer equilibrium where the curve cuts the budget line instead of at tangency, and writing GDP = GNP + NFIA when the correct form is GNP = GDP + NFIA.
Practise this format on the GGSIPU BBA important questions.
BBA 107 economics notes FAQs
How do I get the full BBA 107 notes?
Order them on WhatsApp at 9899436384. The full BBA 107 notes are sold only as a printed book, not as a PDF. The book covers all 4 units in 79 pages with 56 exam questions, 16 solved numericals and 25 diagrams. Our team confirms the price, dispatch and delivery details on WhatsApp when you place the order.
What is the passing mark for BBA 107 Business Economics?
BBA 107 is marked out of 100: 40 internal and 60 end-term, as the GGSIPU BBA scheme of examination states. The 2024-25 BBA scheme does not print a pass percentage, so we do not quote one. End-term minimums, credit rules and re-appear rules are set by GGSIPU Ordinance 11 on ipu.ac.in; your institute can confirm the rule for your batch.
Is BBA 107 a major or a minor paper in GGSIPU BBA?
The scheme lists BBA 107 as an Inter-disciplinary Course / Minor in the first semester, with 4 credits and 4 lecture hours a week (L-4, T-0). It is the only minor paper of Semester 1; BBA 101, 103 and 105 are Discipline Specific (major) courses. Its 4 credits count towards the 24 credits of the semester.
Which BBA 107 unit has the most numericals?
Unit 2 has the most: 6 solved numericals on price, income, cross and advertising elasticity, using the percentage, point and arc methods. Unit 4 has 5 (inflation rate, unemployment rate, real GDP, national income aggregates, expenditure method), Unit 3 has 4 (including the Cournot model) and Unit 1 has 1 numerical plus 4 worked illustrations.
Do the BBA 107 notes follow the 2024-25 NEP scheme?
Yes. The BBA 107 notes follow the GGSIPU BBA Scheme and Syllabus (NEP based) that applies from academic session 2024-25. The syllabus map above lines up every official topic of Units I to IV with a section and page in the notes. Students on the older pre-2024 scheme should compare their own syllabus before ordering.
Which diagrams should I practise for BBA 107?
The BBA 107 notes carry 25 labelled diagrams. Practise those that long answers depend on: TU and MU curves, consumer equilibrium, the three stages of variable proportions, LAC as an envelope curve, monopoly equilibrium, price discrimination, the kinked demand curve and the four-sector circular flow. Unit 3 alone has 8 diagrams, the most of any unit.
Get the full BBA 107 Business Economics Notes on WhatsApp
The complete BBA 107 Business Economics IPU notes come as a printed book, not as a PDF: the same 79-page 2026-27 edition shown in the sample.
To order the GGSIPU BBA Sem 1 Business Economics notes book, message us; our team replies with order and delivery details.
Order the BBA 107 Business Economics Notes book on WhatsApp (4 units, 79 pages)
Unnati Educations is an independent education provider based in Vikaspuri, Delhi. We are not affiliated with, authorised by, or endorsed by Guru Gobind Singh Indraprastha University (GGSIPU). 'GGSIPU' and 'IPU' are used only to describe the syllabus our notes follow. For official information, visit ipu.ac.in.
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