Economics XII Syllabus CBSE board


Part A:

Unit 1: National Income and Related Aggregates :
  1. 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 II: Money and Banking
  1. Money - meaning and 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 III: Determination of Income and Employment
  1. 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 IV: Government Budget and the Economy
  1. 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.
Unit V: Balance of Payments
  1. 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.

Part B:

Indian Economic Development

Unit VI: Development Experience (1947-90) and Economic Reforms since 1991:
  1. 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.
  2. Economic Reforms since 1991: Features and appraisals of liberalisation, globalisation and privatisation (LPG policy); Concepts of demonetization and GST
Unit VII: Current challenges facing Indian Economy
  1. Poverty- absolute and relative; Main programmes for poverty alleviation: A critical assessment;
  2. Human Capital Formation: How people become resource; Role of human capital in economic development; Growth of Education Sector in India
  3. Rural development: Key issues - credit and marketing - role of cooperatives; agricultural diversification; alternative farming - organic farming
  4. Employment: Growth and changes in work force participation rate in formal and informal sectors; problems and policies
  5. Infrastructure: Meaning and Types: Case Studies: Energy and Health: Problems and Policies- A critical assessment;
  6. Sustainable Economic Development: Meaning, Effects of Economic Development on Resources and Environment, including global warming
Unit VIII: Development Experience of India:
  • A comparison with neighbours
  • India and Pakistan
  • India and China
  • Issues: economic growth, population, sectoral development and other Human
  • Development Indicators

Part C:

  1. Project in Economics: Guidelines as given in class XII curriculum


Practical should be conducted alongside the concepts taught in theory classes

  1. Micro and Small Scale Industries
  2. Contemporary Employment situation in India
  3. Goods and Services Tax Act and its Impact on GDP
  4. Health Expenditure (of any state)
  5. Human Development Index
  6. Self-help group
  7. Monetary policy committee and its functions
  8. Government Budget & its Components
  9. Exchange Rate determination – Methods and Techniques
  10. Currency War – reasons and repercussions
  11. Livestock – Backbone of Rural India
  12. Sarwa Siksha Abhiyan – Cost Ratio Benefits
  13. Currency War – reasons and repercussions
  14. Minimum Support Prices
  15. Waste Management in India – Need of the hour
  16. Minimum Wage Rate – approach and Application
  17. Digital India- Step towards the future crises
  18. Vertical Farming – an alternate way
  19. Make in India – The way ahead
  20. Rise of Concrete Jungle- Trend Analysis
  21. Any other newspaper article and its evaluation on basis of economic principles
  22. Food Supply Channel in India
  23. Disinvestment policy of the government
  24. Inclusive Growth Strategy
  25. Trends in Credit availability in India
  26. Role of RBI in Control of Credit
  27. Trends in budgetary condition of India
  28. Alternate fuel – types and importance
  29. Golden Quadrilateral- Cost ratio benefit
  30. Relation between Stock Price Index and
  31. Rain Water Harvesting – a solution to water
  32. Silk Route- Revival of the past
  33. Currency War – reasons and repercussions
  34. Bumper Production- Boon or Bane for the farmer
  35. Organic Farming – Back to the Nature
  36. Any other topic


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