CBSE 12th Class Economics Syllabus 2020

Before going through the syllabus for CBSE class 12th Economics you should understand the exam structure as illustrated in the table below:

Units Periods Marks

Part A: Introductory Macroeconomics

National Income and Related Aggregates 28 10
Money and Banking 15 6
Determination of Income and Employment 27 12
Government Budget and the Economy 15 6
Balance of Payments 15 6
Total 100 40

Part B: Indian Economic Development

Development Experience (1947-90) and Economic Reforms since 1991 28 12
Current Challenges facing Indian Economy 60 22
Development Experience of India – A Comparison with Neighbors 12 06
Total 100 40

Part C: Project work

Project work 20 20

Part A: Introductory Macroeconomics

  • Unit 1: National Income and Related Aggregates
    • What is Macroeconomics?
    • Circular flow of income (two sector model); Methods of calculating National Income – Value Added or Product method, Expenditure method, Income method.
    • Basic concepts in macroeconomics: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation.
    • Aggregates related to National Income: Gross National Product (GNP), Net National Product (NNP), Gross and Net Domestic Product (GDP and NDP) – at market price, at factor cost; Real and Nominal GDP.
    • GDP and Welfare
  • Unit 2: Money and Banking
    • 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 3: Determination of Income and Employment
    • Aggregate demand and its components.
    • Short-run equilibrium output; investment multiplier and its mechanism.
    • Propensity to consume and propensity to save (average and marginal).
    • 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
    • Government budget – meaning, objectives and components.
    • Measures of government deficit – revenue deficit, fiscal deficit, primary deficit their meaning.
    • Classification of receipts – revenue receipts and capital receipts; classification of expenditure – revenue expenditure and capital expenditure.
  • Unit 5: Balance of Payments
    • 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 6: Development Experience (1947-90) and Economic Reforms since 1991
    • A brief introduction of the state of Indian economy on the eve of independence. Common goals of Five Year Plans.
    • Main features, problems and policies of agriculture (institutional aspects and new agricultural strategy, etc.), industry (industrial licensing, etc.) 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
    • Poverty- absolute and relative; Main programmes for poverty alleviation: A critical assessment.
    • Rural development: Key issues – credit and marketing – role of cooperatives; agricultural diversification; alternative farming – organic farming.
    • Human Capital Formation: How people become resource; Role of human capital in economic development; Growth of Education Sector in India
    • Employment: Formal and informal growth, problems and policies.
    • Infrastructure: Meaning and Types: Case Studies: Energy and Health: Problems and Policies- A critical assessment.
    • Sustainable Economic Development: Meaning, Effects of Economic Development on Resources and Environment, including global warming.

 Unit 8: Development Experience of India

    • A comparison with neighbours – India and Pakistan, India and China.
    • Issues: Growth, population, sectoral development and other Human Development Indicators

Part C: Project in Economics

  • Students should complete one project of around 3500 – 4000 words (excluding diagrams & graphs), preferably hand-written.
  • The project must be independent, self-directed piece of study.

Marking scheme for project work

Particulars Marks Allotted
Relevance of the topic 3
Knowledge Content/Research Work 6
Presentation Technique 3
Viva-voce 8
Total 20 Marks