SYLLABUS FOR CLASS 12 ECONOMICS

SESSION 2022-23

CBSE Syllabus for Class 12 Economics is available here. You can download the syllabus in pdf.

The syllabus is well designed for the students so that they clear their concepts of Economics. You can follow relevant books and sample papers to get good marks in your exams.

CLICK HERE FOR CBSE SAMPLE PAPERS FOR CLASS 12

ECONOMICS (030)

CLASS-XII-(2022-23)

Theory: 80 Marks                                                                       3 Hours

Project: 20 Marks

Units MarksPeriods
Part AIntroductory Macroeconomics  
 National Income and Related Aggregates1030
 Money and Banking0615
 Determination of Income and Employment1230
 Government Budget and the Economy0617
 Balance of Payments0618
  40 
Part BIndian Economic Development  
 Development Experience (1947-90) and Economic Reforms since 19911228
 Current Challenges facing Indian Economy2050
 Development Experience of India – A Comparison with Neighbours0812
 Theory Paper (40+40 = 80 Marks)40 
   200
Part CProject Work2020

Part A: Introductory Macroeconomics

Unit 1: National Income and Related Aggregates (30 Periods)

What is Macroeconomics?

Basic concepts in macroeconomics: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation.

Circular flow of income (two sector model); 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 Domestic Product (GDP) and Net Domestic Product (NDP) – at market price, at factor cost; Real and Nominal GDP.

GDP and Welfare

Unit 2: Money and Banking (15 Periods)

Money – 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): Bank of issue, Govt. Bank, Banker’s Bank, Control of Credit through Bank Rate, CRR, SLR, Repo Rate and Reverse Repo Rate, Open Market Operations, Margin requirement.

Unit 3: Determination of Income and Employment (30 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 – changes in government spending, taxes and money supply.

Unit 4: 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. Balanced, Surplus and Deficit Budget – measures of government deficit.

Unit 5: Balance of Payments (18 Periods)

Balance of payments account – meaning and components; Balance of payments – Surplus and Deficit

Foreign exchange rate – meaning of fixed and flexible rates and managed floating. Determination of exchange rate in a free market, Merits and demerits of flexible and fixed exchange rate.

Managed Floating exchange rate system

Part B: Indian Economic Development

Unit 6: Development Experience (1947-90) and Economic Reforms since 1991 (28 Periods)

A brief introduction of the state of Indian economy on the eve of independence. Indian economic system and common goals of Five Year Plans.

Main features, problems and policies of agriculture (institutional aspects and new agricultural strategy), industry (IPR 1956; SSI – role & importance) and foreign trade.

Economic Reforms since 1991:

Features and appraisals of liberalisation, globalisation and privatisation (LPG policy); Concepts of demonetization and GST

Unit 7: Current challenges facing Indian Economy (60 Periods)

Human Capital Formation: How people become resource; Role of human capital in economic development; Growth of Education Sector in India

Rural development: Key issues – credit and marketing – role of cooperatives; agricultural diversification; alternative farming – organic farming

Employment: Growth and changes in work force participation rate in formal and informal sectors; problems and policies

Sustainable Economic Development: Meaning, Effects of Economic Development on Resources and Environment, including global warming

Unit 8: Development Experience of India: (12 Periods)

A comparison with neighbours India and Pakistan

India and China

Issues: economic growth, population, sectoral development and other Human Development Indicators

Part C: Project in Economics (20 Periods)

Prescribed Books:

  1. Statistics for Economics, NCERT
  2. Indian Economic Development, NCERT
  3. Introductory Microeconomics, NCERT
  4. Macroeconomics, NCERT
  5. Supplementary Reading Material in Economics, CBSE

Note: The above publications are also available in Hindi Medium.