Economics is the branch of Social Science that studies the production, distribution, and consumption of goods and services. Focusing on the principles of Economics, individuals, personal households, private firms, and government organizations while making the use of available resources to produce valuable commodities and distribute them. To help Indian students understand the value of judicious use of resources both effectively and efficiently, CBSE has incorporated class 12 Economics as an important part of the curriculum in Secondary Education. Through this blog, let us have you everything you need to know about the study curriculum and syllabus for Economics in class 12th to make a successful career in Economics.
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Branches of Class 12 Economics
Being at a broader level, economics affects the lives of every single person, society, government, business, etc. Owing to this, class 12 Economics has provides a detailed study of two of the main branches of Economics – Microeconomics, and Macroeconomics.
Let us understand each one in detail:
Microeconomics is the study of decisions made by individuals, households, companies, and private firms on how would they be allocating their resources. Striving to uncover what factors influence the decision made by an individual, Microeconomics focuses on the “bottom-up” approach, taking into consideration the main sectors of the economy – Agriculture, Manufacturing, and Services.
Also Read: Agricultural Economics
It is the study of the behavior, structure, and performance of an economy at a broad level. With a “top-down” approach, Macroeconomics seeks to understand the concept of GDP (Gross Domestic Product), inflation, expenditures, receipts, borrowing, monetary policies, and unemployment. The class 12 Economics subject exposes students to the current state of the Indian economy at the national level.
Prerequisite Education for Class 12 Economics
Before we discuss the important topics covered in class 12 Economics, at the macro level, students must have a sound knowledge of the economy at the micro-level. Below-listed is the concepts that you must be familiar with to learn the advanced stage of Economics:
|Theory of Consumer Behaviour||Utility, Budget Set, Marginal Rate of Substitution, Diminishing Rate of SubstitutionIndifference Curve and its Properties, Demand (Function, Schedule, Curve, Linear Demand, Law of Demand) and Price Elasticity of Demand.|
|Production and Costs||Production (Production Function, Total Product, Marginal Product, Average Product), Long and Short Run, Law of Variable Proportion, Law of Diminishing Marginal Product, Returns to Scale, Cost Function, Total Variable Cost and Total Fixed Cost, Average Variable Cost and Average Fixed Cost.|
|Theory of Firm Under Perfect Competition||Perfect Competition and its Functions, Revenue (Total, Average, Marginal), Revenue Curves and their Shapes, Break-even Point, Producer Equilibrium, Supply, and its Curve and Supply Elasticity.|
|Market Equilibrium||Equilibrium Price and Quantity, Excess Demand and Supply, Price Ceiling and Price Floor and Coincident Change in Demand and Supply.|
|Non Competitive Markets||Monopoly and its Features, Monopolistic Competition, and Oligopoly|
CBSE Class 12 Macro Economics
Since class 12 Economics contains more of the topics about Macroeconomics, here is the list of chapters and the prominent topics taught to the students, part-wise:
|Unit 1||National Income and Related Aggregates||12||30|
|Unit 2||Money and Banking||6||15|
|Unit 3||Determination of Income and Employment||10||25|
|Unit 4||Government Budget and the Economy||6||15|
|Unit 5||Balance of Payments||6||15|
|Total Theory Paper (Term 1)||40||100|
Part A: Introductory Macroeconomics
National Income Accounting
- Final, Intermediate, Consumption and Capital Goods
- Money Flow
- Injection and Leakages
- National, Private and Personal Income
Money and Banking
- Barter System
- Credit Creation
- Instruments of Monetary Policy
- CRR and SLR
- Aggregate Demand and Supply
- Consumption Function
- Propensity to Consume
- Propensity to Save
- Paradox of Thrift
Government Budget and Economy
- Government Budget
- Capital Receipts
- Deficit Budget
Balance of Payments
- Open Economy
- Balance of Payments
- Balance of Trade
- Current and Capital Account
- Foreign Exchange Rate
- Devaluation and Depreciation
Part B: Indian Economic Development
|Unit 6||Development Experience (1947-90)and Economic Reforms since 1991||12||28|
|Unit 7||Current Challenges facing Indian Economy||22||60|
|Unit 8||Development Experience of India – A Comparison with neighbors||06||12|
|Total Theory Paper (Term 2)||40||100|
- Economic Reforms since 1991
- Challenges faced by the Indian Economy
- Development Experience of India
Part C: Project For Term 1 & Term 2
|The relevance of the topic||3|
|Knowledge Content/Research Work||6|
The goal of the project work is for students to be able to:
- Examine the theoretical topics acquired in courses XI and XII in greater depth.
- Use theoretical ideas and reasoning to analyse and evaluate real-world economic scenarios.
- Demonstrate that you have learned economic theory.
- Follow up on elements of economics that students are interested in.
- Develop the communication skills to argue logically
Scope of the project
- As a proposed flow chart, learners can work on the following lines:
- Make a title/topic choice.
- The gathering of study materials and data
- Material/data organisation
- data/materials currently available
- Analyzing the information/data in order to reach a conclusion
- Draw the appropriate conclusion.
- The Work of the Project is Presented
Mode of presentation
Each learner will present the research work in the Project File to the External and Internal examiners after the specified period. The questions should be based on the learner’s Research Work/Project File. The Internal Examiner must guarantee that the learner’s study is his or her unique effort. Authenticity should be confirmed and verified if there is any question.
The CBSE Class 12 Economics Syllabus is divided into three parts: the first two are concerned with studying the course’s chapters, while the third is concerned with project work that must be investigated and documented for submission to the school as an assignment.
Part C of the CBSE Class 12 Economics Syllabus is an Economics Project.
Part A, Introductory Macroeconomics, is worth 40 points, whereas Part B, Indian Economic Development, is worth 40 points.
Also Read: Economic Books
Class 12 Economics provides a broad degree that allows students to comprehend and learn quickly. If you are looking forward to pursuing Economics and want to study further with either BSc Economics, BA Economics, or even a Ph.D. in Economics, we are here for you. Make use of Leverage Edu’s special AI tool to find out the best-fit university as per your profile.