Class 12 Economics – CBSE Course Structure

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Class 12 Economics

Economics is the branch of Social Science which studies the production, distribution and consumption of goods and services. Focusing on the principles of Economics, individuals, personal households, private firms and government organisations while making the use of available resources to produce valuable commodities and distribute them. In order 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.

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

Microeconomics is the study of decisions made by the 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

Macroeconomics

It is the study of the behaviour, 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 India economy at the national level.

Also Read: 

Prerequisite Education for Class 12 Economics

Before we discuss the important topics covered in class 12 Economics, at the macro-level, it is imperative for students to have a sound knowledge of the economy at the micro-level. Below-listed are the concepts that you must be familiar with in order to learn the advanced stage of Economics:

Topic Sub-topics
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 pertaining to Macroeconomics, here is the list of chapters and the prominent topics taught to the students, part-wise:

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Part A: Introductory Macroeconomics

National Income Accounting

  • Final, Intermediate, Consumption and Capital Goods
  • Investment
  • Depreciation
  • Money Flow
  • Injection and Leakages
  • National, Private and Personal Income
  • GDP

Money and Banking

  • Barter System
  • Money
  • Banking
  • Credit Creation
  • Instruments of Monetary Policy
  • CRR and SLR

Income Determination

  • Aggregate Demand and Supply
  • Consumption Function
  • Propensity to Consume
  • Propensity to Save
  • Multiplier
  • Paradox of Thrift 

Government Budget and Economy

  • Government Budget
  • Capital Receipts
  • Expenditure
  • 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

  • Economic Reforms since 1991
  • Challenges faced by the Indian Economy
  • Development Experience of India

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 PhD 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.

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