The Grade XII Economics syllabus is divided into two compulsory parts - Part A: Introductory Microeconomics and Part B: Introductory Macroeconomics. Each unit carries separate marks and together they form a 3-hour examination of 100 marks.
Overall focus: Basic economic problems, consumer and producer behaviour, market forms and price determination, as well as national income, money and banking, income determination, government budget and balance of payments.
Part A: MicroeconomicsPart B: MacroeconomicsTime: 3 Hours · All units in both Parts are compulsory.
Instructions: The syllabus is divided into Part A and Part B. Separate marks are given with each unit in the summary table below, followed by detailed unit-wise content for classroom planning and exam preparation.
Summary of Units - Part A & Part B (Total: 100 Marks)
Central problems of an economy - what, how and for whom to produce.
Concept of production possibility frontier and opportunity cost.
Grade XII · Economics · Unit 2
Unit 2 · Consumer Equilibrium and Demand (18 Marks)
18 Marks
Consumer’s equilibrium: meaning of utility and 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 and determinants of demand.
Demand schedule and demand curve; movement along and shifts in the demand curve.
Price elasticity of demand - factors affecting price elasticity of demand.
Measurement of price elasticity of demand - percentage-change method and geometric method (linear demand curve).
Relationship between price elasticity of demand and total expenditure.
Grade XII · Economics · Unit 3
Unit 3 · Producer Behavior and Supply (18 Marks)
18 Marks
Production function: Total Product, Average Product and Marginal Product; returns to a factor.
Cost and revenue concepts in the short run - total cost, total fixed cost, total variable cost.
Average fixed cost, average variable cost and marginal cost - meaning and their relationship.
Revenue - total revenue, average revenue and marginal revenue.
Producer’s equilibrium - meaning and its conditions in terms of marginal revenue and marginal cost.
Supply and market supply; determinants of supply.
Supply schedule and supply curve; movements along and shifts in the supply curve.
Price elasticity of supply - concept and measurement by percentage-change method and geometric method.
Grade XII · Economics · Unit 4
Unit 4 · Forms of Market and Price Determination (10 Marks)
10 Marks
Perfect competition - features; determination of market equilibrium and effects of shifts in demand and supply.
Other market forms - monopoly, monopolistic competition and oligopoly - their meaning and features.
Part B - Introductory Macroeconomics
Grade XII · Economics · Unit 1
Unit 1 · National Income and Related Aggregates (15 Marks)
15 Marks
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 and Income method.
Aggregates related to National Income - GNP, NNP, GDP and NDP (at market price and at factor cost).
National Disposable Income (gross and net), Private Income, Personal Income and Personal Disposable Income.
Real and Nominal GDP; GDP and welfare.
Grade XII · Economics · Unit 2
Unit 2 · Money and Banking (08 Marks)
8 Marks
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 with reference to the Reserve Bank of India.
Grade XII · Economics · Unit 3
Unit 3 · Determination of Income and Employment (12 Marks)
12 Marks
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 excess and deficient demand - changes in government spending and availability of credit.
Grade XII · Economics · Unit 4
Unit 4 · Government Budget and the Economy (08 Marks)
8 Marks
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 and primary deficit and their meaning.
Fiscal policy and its role (non-evaluative topic).
Grade XII · Economics · Unit 5
Unit 5 · Balance of Payments (07 Marks)
7 Marks
Balance of payments account - meaning and components.
