CBSE Syllabus | NCERT Syllabus | Economics Class 12 NCERT Syllabus

Syllabus of Economics class XII

1. Introductory Microeconomics
2. Introductory Macroeconomics

1. Introductory Microeconomics

Unit I: Introduction

• What is microeconomics?
• Central problems of an economy, production possibility curve and opportunity cost.

Unit II: Consumer Behaviour and Demand

• Consumer’s Equilibrium: meaning and attainment of equilibrium through Utility Approach: One and two commodity cases.

• Demand: market demand, determinants of demand, demand schedule, demand curve, movement along and shifts in demand curve, price elasticity of demand, measurement of price elasticity of demand – percentage, total expenditure and geometric methods

Unit III: Producer Behaviour and Supply

• Production function: returns to factor and returns to scale

• Supply: market supply, determinants of supply, supply schedule, supply curve movement along and shifts in supply curve, price elasticity of supply, measurement of price elasticity of supply – percentage and geometric methods

• Cost and Revenue: Concepts of costs; short-run cost curves (fixed and variable costs; total, average and marginal costs); concepts of revenue – total, average and marginal revenue and their relationship. Producer’s equilibrium – with the help of MC and MR.

Unit IV: Forms of Market and Price Determination

• Forms of market – perfect competition, monopoly, monopolistic competition – their meaning and features.

• Price determination under perfect competition – equilibrium price, effects of shifts in demand and supply.

Unit V: Simple Applications of Tools of Demand and Supply Curves

The teachers can be given the flexibility to choose the issues: rationing, floors and ceilings and Food Availability Decline (FAD) Theory (the teachers may also choose alternative examples that are simple and easy to understand)

Note to textbook writers: More examples from day-to-day context could be given. More numerical examples (solved) will have to be given. Use of pictures, charts and simple tables is essential.


2. Introductory Macroeconomics

Unit I: National Income and Related Aggregates — Basic Concepts and Measurement

• Macroeconomics: meaning.

• Circular flow of income, concepts of GDP, GNP, NDP, NNP (at market price and factor cost), National Disposable Income (gross and net); Private Income, Personal Income and Personal Disposable Income

• Measurement of National Income –Value Added method, Income method and Expenditure method

Unit II: Determination of Income and Employment

• Aggregate demand, aggregate supply and their components
• Propensity to consume and propensity to save (average and marginal)
• Meaning of involuntary unemployment and full employment
• Determination of income and employment: two sector model
• Concept of investment multiplier and its working
• Problems of excess and deficient demand
• Measures to correct excess and deficient demand – availability of credit, change in government spending

Unit III: Money and Banking

• Money: meaning, evolution and functions
• Central bank: meaning and functions

• Commercial banks: meaning and functions
• Recent significant reforms and issues in Indian Banking System: privatisation and modernisation

Unit IV: Government Budget and the Economy

• Government budget – meaning and its components
• Objectives of government budget
• Classification of receipts – revenue and capital; classification of expenditure – revenue and capital, plan and non-plan, and developmental and non-developmental
• Balanced budget, surplus budget and deficit budget: meaning and implications
• Revenue deficit, fiscal deficit and primary deficit: meaning and implications; measures to contain different deficits
• Downsizing the role of government: meaning and implications

Unit V: Balance of Payments

• Foreign exchange rate – meaning (fixed and flexible), merits and demerits; determination through demand and supply
• Balance of payments accounts – meaning and components
• A brief analysis about recent exchange rate issues

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