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Economics - CBSE 12th standard Syllabus

 

  
Class XII
Paper 1 3 Hours 100 Marks
Units Periods Marks

 

Part A : Introductory Microeconomics
1 Introduction 10 4
2. Consumer Equilibrium and Demand 32 18
3. Producer Behaviour and Supply 32 18
4. Forms of Market and Price Determination 22 10
5. Simple applications of Tools of demand and supply 8 -
104 50
Part B : Introductory Macroeconomics
6. National Income and Related Aggregates 30 15
7. Money and Banking 18 8
8. Determination of Income and Employment 25 12
9. Government Budget and the Economy 17 8
10. Balance of Payments 14 7
104 50
197
Part A : Introductory Microeconomics

Unit 1: Introduction 10 Periods
Meaning of microeconomics and macroeconomics
What is an economy? Central problems of an economy : what, how and for whom to produce; concepts of production possibility frontier and opportunity cost.

 

Unit 2: Consumer Equilibrium and Demand 32 Periods
Consumer's equilibrium – meaning of utility, marginal utility, law of diminishing marginal utility, conditions of consumer's equilibrium using marginal utility analysis.
Indifference curve analysis of consumer's equilibrium-the consumer's budget (budget set and budget line), preferences of the consumer (indifference curve, indifference map) and conditions of consumer's equilibrium. Demand, market demand, determinants of demand, demand schedule, demand curve, movement along and shifts in the demand curve; price elasticity of demand - factors affecting price elasticity of demand; measurenment of price elasticity of demand – (a) percentage-change method and (b) geometric method (linear demand curve); relationship between price elasticity of demand and total expenditure.

 

Unit 3: Producer Behaviour and Supply 32 Periods
Production function: Total Product, Average Product and Marginal Product.
Returns to a Factor. Cost and Revenue: Short run costs - total cost, total fixed cost, total variable cost; Average fixed cost, average variable cost and marginal cost-meaning and their relationship. Revenue - total, average and marginal revenue. Producer's equilibrium-meaning and its conditions in terms of marginal revenue-marginal cost. Supply, market supply, determinants of supply, supply schedule, supply curve, movements along and
shifts in supply curve, price elasticity of supply; measurement of price elasticity of supply – (a) percentagechange method and (b) geometric method.

 

Unit 4: Forms of Market and Price Determination 22 Periods
Perfect competition - Features; Determination of market equilibrium and effects of shifts in demand and supply. Other Market Forms - monopoly, monopolistic competition, oligopoly - their meaning and features.

 

Unit 5: Simple applications of Tools of demand and supply 8 Periods
(not to be examined)
 

 

Part B : Introductory Macroeconomics

 

Unit 6: National Income and related aggregates 30 Periods
Some basic concepts: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation. Circular flow of income; Methods of calculating National Income – Value Added or Product method, Expenditure method, Income method. Aggregates related to National Income: Gross National Product (GNP), Net National Product (NNP), Gross and Net Domestic Product (GDP and NDP) - at market price, at factor cost; National Disposable Income (gross and net), Private Income, Personal Income and Personal Disposable Income; Real and Nominal GDP. GDP and Welfare

 

Unit 7: Money and Banking 18 Periods
Money – its meaning and functions. Supply of money – Currency held by the public and net demand deposits held by commercial banks. Money creation by the commercial banking system. Central bank and its functions (example of the Reserve Bank of India).

 

Unit 8: Determination of Income and Employment 25 Periods
Aggregate demand and its components. Propensity to consume and propensity to save (average and marginal). Short–run equilibrium output; investment multiplier and its mechanism. Meaning of full employment and involuntary unemployment. Problems of excess demand and deficient demand; measures to correct them - change in government spending, availability of credit.

 

Unit 9: Government Budget and the Economy 17 Periods
Government budget - meaning, objectives and components. Classification of receipts - revenue receipts and capital receipts; classification of expenditure – revenue expenditure and capital expenditure. Measures of government deficit - revenue deficit, fiscal deficit, primary deficit:their meaning. Fiscal Policy and its role (non evaluative topic)

 

Unit 10: Balance of Payments 14 Periods
Balance of payments account - meaning and components; balance of payments deficit-meaning. Foreign exchange rate – meaning of fixed and flexible rates and managed floating. Determination of exchange rate in a free market.

Recommended textbooks
1. Indian Economic Development, Class XI, NCERT
2. Introductory Micro Economics, Class XII, NCERT
3. Macro Economics, Class XII, NCERT
4. Supplimentary Reading Material in Economics, Class XII, CBSE
Note : The above publications are also available in Hindi Medium

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