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 6
ECONOMICS 
CLASS - XII (2023-24) 
           
Theory: 80 Marks           3 Hours  
Project: 20 Marks 
Units  Marks Periods 
Part A  Introductory Macroeconomics   
 National Income and Related Aggregates  10 30 
 Money and Banking 06 15 
 Determination of Income and Employment 12 30 
 Government Budget and the Economy 06 17 
 Balance of Payments 06 18 
  40  
    
Part B Indian Economic Development  
 
 Development Experience (1947-90)  
and Economic Reforms since 1991 
12  28 
 Current Challenges facing Indian Economy  20 
50 
 Development Experience of India – A Comparison with 
Neighbours  
08  12 
 Theory Paper (40+40 = 80 Marks) 40 
 
   
200 
    
Part C Project Work 20 20 
 
Part A: Introductory Macroeconomics 
 
Unit 1: National Income and Related Aggregates     30 Periods 
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 Deflator, GDP and Welfare 
 
 
 
Page 2


 6
ECONOMICS 
CLASS - XII (2023-24) 
           
Theory: 80 Marks           3 Hours  
Project: 20 Marks 
Units  Marks Periods 
Part A  Introductory Macroeconomics   
 National Income and Related Aggregates  10 30 
 Money and Banking 06 15 
 Determination of Income and Employment 12 30 
 Government Budget and the Economy 06 17 
 Balance of Payments 06 18 
  40  
    
Part B Indian Economic Development  
 
 Development Experience (1947-90)  
and Economic Reforms since 1991 
12  28 
 Current Challenges facing Indian Economy  20 
50 
 Development Experience of India – A Comparison with 
Neighbours  
08  12 
 Theory Paper (40+40 = 80 Marks) 40 
 
   
200 
    
Part C Project Work 20 20 
 
Part A: Introductory Macroeconomics 
 
Unit 1: National Income and Related Aggregates     30 Periods 
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 Deflator, GDP and Welfare 
 
 
 
 7
 
Unit 2: Money and Banking        15 Periods 
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 (example of the Reserve Bank of India): Bank of issue, 
Govt. Bank, Banker's Bank, Control of Credit through Bank Rate, Cash Reserve Ratio 
(CRR), Statutory Liquidity Ratio (SLR), Repo Rate and Reverse Repo Rate, Open 
Market Operations, Margin requirement. 
 
Unit 3: Determination of Income and Employment     30 Periods 
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 4: Government Budget and the Economy      17 Periods 
 
Government budget - meaning, objectives and components. 
 
Classification of receipts - revenue receipts and capital receipts;  
Classification of expenditure – revenue expenditure and capital expenditure. 
Balanced, Surplus and Deficit Budget – measures of government deficit. 
 
Unit 5: Balance of Payments        18 Periods 
Balance of payments account - meaning and components;  
Balance of payments – Surplus and Deficit 
Foreign exchange rate - meaning of fixed and flexible rates and managed floating. 
Determination of exchange rate in a free market, Merits and demerits of flexible and 
fixed exchange rate.  
Managed Floating exchange rate system 
 
 
Page 3


 6
ECONOMICS 
CLASS - XII (2023-24) 
           
Theory: 80 Marks           3 Hours  
Project: 20 Marks 
Units  Marks Periods 
Part A  Introductory Macroeconomics   
 National Income and Related Aggregates  10 30 
 Money and Banking 06 15 
 Determination of Income and Employment 12 30 
 Government Budget and the Economy 06 17 
 Balance of Payments 06 18 
  40  
    
Part B Indian Economic Development  
 
 Development Experience (1947-90)  
and Economic Reforms since 1991 
12  28 
 Current Challenges facing Indian Economy  20 
50 
 Development Experience of India – A Comparison with 
Neighbours  
08  12 
 Theory Paper (40+40 = 80 Marks) 40 
 
   
200 
    
Part C Project Work 20 20 
 
Part A: Introductory Macroeconomics 
 
Unit 1: National Income and Related Aggregates     30 Periods 
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 Deflator, GDP and Welfare 
 
 
 
 7
 
Unit 2: Money and Banking        15 Periods 
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 (example of the Reserve Bank of India): Bank of issue, 
Govt. Bank, Banker's Bank, Control of Credit through Bank Rate, Cash Reserve Ratio 
(CRR), Statutory Liquidity Ratio (SLR), Repo Rate and Reverse Repo Rate, Open 
Market Operations, Margin requirement. 
 
Unit 3: Determination of Income and Employment     30 Periods 
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 4: Government Budget and the Economy      17 Periods 
 
Government budget - meaning, objectives and components. 
 
Classification of receipts - revenue receipts and capital receipts;  
Classification of expenditure – revenue expenditure and capital expenditure. 
Balanced, Surplus and Deficit Budget – measures of government deficit. 
 
Unit 5: Balance of Payments        18 Periods 
Balance of payments account - meaning and components;  
Balance of payments – Surplus and Deficit 
Foreign exchange rate - meaning of fixed and flexible rates and managed floating. 
Determination of exchange rate in a free market, Merits and demerits of flexible and 
fixed exchange rate.  
Managed Floating exchange rate system 
 
 
 8
 
Part B: Indian Economic Development 
Unit 6: Development Experience (1947-90) and Economic Reforms since 1991:  
28 Periods 
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. 
 
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     60 Periods 
Human Capital Formation: How people become resource; Role of human capital in 
economic development; Growth of Education Sector in India  
Rural development: Key issues - credit and marketing - role of cooperatives; 
agricultural diversification; alternative farming - organic farming 
Employment: Growth and changes in work force participation rate in formal and 
informal sectors; problems and policies 
Sustainable Economic Development: Meaning, Effects of Economic Development on 
Resources and Environment, including global warming 
 
Unit 8: Development Experience of India:      12 Periods 
A comparison with neighbours 
India and Pakistan 
India and China 
Issues: economic growth, population, sectoral development and other Human 
Development Indicators 
Part C: Project in Economics              20 Periods 
 
Prescribed Books: 
1. Statistics for Economics, NCERT 
2. Indian Economic Development, NCERT 
3. Introductory Microeconomics, NCERT 
4. Macroeconomics, NCERT 
5. Supplementary Reading Material in Economics, CBSE 
Note: The above publications are also available in Hindi Medium. 
Page 4


 6
ECONOMICS 
CLASS - XII (2023-24) 
           
Theory: 80 Marks           3 Hours  
Project: 20 Marks 
Units  Marks Periods 
Part A  Introductory Macroeconomics   
 National Income and Related Aggregates  10 30 
 Money and Banking 06 15 
 Determination of Income and Employment 12 30 
 Government Budget and the Economy 06 17 
 Balance of Payments 06 18 
  40  
    
Part B Indian Economic Development  
 
 Development Experience (1947-90)  
and Economic Reforms since 1991 
12  28 
 Current Challenges facing Indian Economy  20 
50 
 Development Experience of India – A Comparison with 
Neighbours  
08  12 
 Theory Paper (40+40 = 80 Marks) 40 
 
   
200 
    
Part C Project Work 20 20 
 
Part A: Introductory Macroeconomics 
 
Unit 1: National Income and Related Aggregates     30 Periods 
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 Deflator, GDP and Welfare 
 
 
 
 7
 
Unit 2: Money and Banking        15 Periods 
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 (example of the Reserve Bank of India): Bank of issue, 
Govt. Bank, Banker's Bank, Control of Credit through Bank Rate, Cash Reserve Ratio 
(CRR), Statutory Liquidity Ratio (SLR), Repo Rate and Reverse Repo Rate, Open 
Market Operations, Margin requirement. 
 
Unit 3: Determination of Income and Employment     30 Periods 
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 4: Government Budget and the Economy      17 Periods 
 
Government budget - meaning, objectives and components. 
 
Classification of receipts - revenue receipts and capital receipts;  
Classification of expenditure – revenue expenditure and capital expenditure. 
Balanced, Surplus and Deficit Budget – measures of government deficit. 
 
Unit 5: Balance of Payments        18 Periods 
Balance of payments account - meaning and components;  
Balance of payments – Surplus and Deficit 
Foreign exchange rate - meaning of fixed and flexible rates and managed floating. 
Determination of exchange rate in a free market, Merits and demerits of flexible and 
fixed exchange rate.  
Managed Floating exchange rate system 
 
 
 8
 
Part B: Indian Economic Development 
Unit 6: Development Experience (1947-90) and Economic Reforms since 1991:  
28 Periods 
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. 
 
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     60 Periods 
Human Capital Formation: How people become resource; Role of human capital in 
economic development; Growth of Education Sector in India  
Rural development: Key issues - credit and marketing - role of cooperatives; 
agricultural diversification; alternative farming - organic farming 
Employment: Growth and changes in work force participation rate in formal and 
informal sectors; problems and policies 
Sustainable Economic Development: Meaning, Effects of Economic Development on 
Resources and Environment, including global warming 
 
Unit 8: Development Experience of India:      12 Periods 
A comparison with neighbours 
India and Pakistan 
India and China 
Issues: economic growth, population, sectoral development and other Human 
Development Indicators 
Part C: Project in Economics              20 Periods 
 
Prescribed Books: 
1. Statistics for Economics, NCERT 
2. Indian Economic Development, NCERT 
3. Introductory Microeconomics, NCERT 
4. Macroeconomics, NCERT 
5. Supplementary Reading Material in Economics, CBSE 
Note: The above publications are also available in Hindi Medium. 
 9
Suggested Question Paper Design 
Economics (Code No. 030) 
Class XII (2023-24) 
March 2024 Examination 
 
Marks: 80          Duration: 3 hrs. 
 
SN Typology of Questions Marks Percentage 
1 
Remembering and Understanding:  
Exhibit memory of previously learned material by recalling 
facts, terms, basic concepts, and answers. 
Demonstrate understanding of facts and ideas by 
organizing, comparing, translating, interpreting, giving 
descriptions, and stating main ideas 
44 55% 
2 
Applying: Solve problems to new situations by applying 
acquired knowledge, facts, techniques and rules in a 
different way. 
18 22.5% 
3 
Analysing, Evaluating and Creating:  
Examine and break information into parts by identifying 
motives or causes. Make inferences and find evidence to 
support generalizations.  
Present and defend opinions by making judgments about 
information, validity of ideas, or quality of work based on a 
set of criteria. 
Compile information together in a different way by 
combining elements in a new pattern or proposing 
alternative solutions. 
 
18 22.5% 
 Total 80  100% 
Page 5


 6
ECONOMICS 
CLASS - XII (2023-24) 
           
Theory: 80 Marks           3 Hours  
Project: 20 Marks 
Units  Marks Periods 
Part A  Introductory Macroeconomics   
 National Income and Related Aggregates  10 30 
 Money and Banking 06 15 
 Determination of Income and Employment 12 30 
 Government Budget and the Economy 06 17 
 Balance of Payments 06 18 
  40  
    
Part B Indian Economic Development  
 
 Development Experience (1947-90)  
and Economic Reforms since 1991 
12  28 
 Current Challenges facing Indian Economy  20 
50 
 Development Experience of India – A Comparison with 
Neighbours  
08  12 
 Theory Paper (40+40 = 80 Marks) 40 
 
   
200 
    
Part C Project Work 20 20 
 
Part A: Introductory Macroeconomics 
 
Unit 1: National Income and Related Aggregates     30 Periods 
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 Deflator, GDP and Welfare 
 
 
 
 7
 
Unit 2: Money and Banking        15 Periods 
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 (example of the Reserve Bank of India): Bank of issue, 
Govt. Bank, Banker's Bank, Control of Credit through Bank Rate, Cash Reserve Ratio 
(CRR), Statutory Liquidity Ratio (SLR), Repo Rate and Reverse Repo Rate, Open 
Market Operations, Margin requirement. 
 
Unit 3: Determination of Income and Employment     30 Periods 
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 4: Government Budget and the Economy      17 Periods 
 
Government budget - meaning, objectives and components. 
 
Classification of receipts - revenue receipts and capital receipts;  
Classification of expenditure – revenue expenditure and capital expenditure. 
Balanced, Surplus and Deficit Budget – measures of government deficit. 
 
Unit 5: Balance of Payments        18 Periods 
Balance of payments account - meaning and components;  
Balance of payments – Surplus and Deficit 
Foreign exchange rate - meaning of fixed and flexible rates and managed floating. 
Determination of exchange rate in a free market, Merits and demerits of flexible and 
fixed exchange rate.  
Managed Floating exchange rate system 
 
 
 8
 
Part B: Indian Economic Development 
Unit 6: Development Experience (1947-90) and Economic Reforms since 1991:  
28 Periods 
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. 
 
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     60 Periods 
Human Capital Formation: How people become resource; Role of human capital in 
economic development; Growth of Education Sector in India  
Rural development: Key issues - credit and marketing - role of cooperatives; 
agricultural diversification; alternative farming - organic farming 
Employment: Growth and changes in work force participation rate in formal and 
informal sectors; problems and policies 
Sustainable Economic Development: Meaning, Effects of Economic Development on 
Resources and Environment, including global warming 
 
Unit 8: Development Experience of India:      12 Periods 
A comparison with neighbours 
India and Pakistan 
India and China 
Issues: economic growth, population, sectoral development and other Human 
Development Indicators 
Part C: Project in Economics              20 Periods 
 
Prescribed Books: 
1. Statistics for Economics, NCERT 
2. Indian Economic Development, NCERT 
3. Introductory Microeconomics, NCERT 
4. Macroeconomics, NCERT 
5. Supplementary Reading Material in Economics, CBSE 
Note: The above publications are also available in Hindi Medium. 
 9
Suggested Question Paper Design 
Economics (Code No. 030) 
Class XII (2023-24) 
March 2024 Examination 
 
Marks: 80          Duration: 3 hrs. 
 
SN Typology of Questions Marks Percentage 
1 
Remembering and Understanding:  
Exhibit memory of previously learned material by recalling 
facts, terms, basic concepts, and answers. 
Demonstrate understanding of facts and ideas by 
organizing, comparing, translating, interpreting, giving 
descriptions, and stating main ideas 
44 55% 
2 
Applying: Solve problems to new situations by applying 
acquired knowledge, facts, techniques and rules in a 
different way. 
18 22.5% 
3 
Analysing, Evaluating and Creating:  
Examine and break information into parts by identifying 
motives or causes. Make inferences and find evidence to 
support generalizations.  
Present and defend opinions by making judgments about 
information, validity of ideas, or quality of work based on a 
set of criteria. 
Compile information together in a different way by 
combining elements in a new pattern or proposing 
alternative solutions. 
 
18 22.5% 
 Total 80  100% 
 10
Guidelines for Project Work in Economics (Class XI and XII) 
 
The objectives of the project work are to enable learners to: 
? probe deeper into theoretical concepts learnt in classes XI and XII   
? analyse and evaluate real world economic scenarios using theoretical constructs and 
arguments 
? demonstrate the learning of economic theory 
? follow up aspects of economics in which learners have interest 
? develop the communication skills to argue logically 
The expectations of the project work are that: 
? learners will complete only ONE project in each academic session 
? project should be of 3,500-4,000 words (excluding diagrams & graphs), preferably 
hand-written 
? it will be an independent, self-directed piece of study 
Role of the teacher: 
The teacher plays a critical role in developing thinking skills of the learners. A teacher should: 
? help each learner select the topic based on recently published extracts from the news 
media, government policies, RBI bulletin, NITI Aayog reports, IMF/World Bank reports etc., 
after detailed discussions and deliberations of the topic 
? play the role of a facilitator and supervisor to monitor the project work of the learner 
through periodic discussions 
? guide the research work in terms of sources for the relevant data  
? educate learner about plagiarism and the importance of quoting the source of the 
information to ensure authenticity of research work 
? prepare the learner for the presentation of the project work 
? arrange a presentation of the project file 
Scope of the project: 
 Learners may work upon the following lines as a suggested flow chart: 
Choose a title/topic 
 
Collection of the research material/data 
 
 Organization of material/data 
 
Present material/data 
 
Analysing the material/data for conclusion 
 
Draw the relevant conclusion 
 
Presentation of the Project Work 
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FAQs on Syllabus: Economics for Class 12 - Economics Class 12 - Commerce

1. What is economics and why is it important?
Ans. Economics is a social science that studies how individuals, businesses, governments, and societies allocate scarce resources to satisfy unlimited wants and needs. It helps us understand how decisions are made regarding production, consumption, and distribution of goods and services. Economics is important as it provides insights into various economic issues, helps in making informed decisions, and plays a crucial role in shaping policies for economic development.
2. What are the key principles of economics?
Ans. The key principles of economics include scarcity, opportunity cost, supply and demand, incentives, and efficiency. Scarcity refers to the limited availability of resources compared to unlimited wants and needs. Opportunity cost is the value of the next best alternative foregone when making a choice. Supply and demand determine prices and quantities in a market. Incentives influence human behavior and decision-making. Efficiency is the optimal use of resources to maximize output.
3. What are the different types of economic systems?
Ans. There are three main types of economic systems: market economy, command economy, and mixed economy. In a market economy, resources are allocated based on the interactions of buyers and sellers in the marketplace, with limited government intervention. In a command economy, the government controls all economic activities and resource allocation. A mixed economy combines elements of both market and command economies, where the government and private sector coexist and share in resource allocation.
4. What is the role of government in economics?
Ans. The role of government in economics varies depending on the economic system. In a market economy, the government's role is limited to enforcing property rights, providing public goods, ensuring fair competition, and correcting market failures. In a command economy, the government controls all aspects of resource allocation and economic decision-making. In a mixed economy, the government plays a dual role by providing public goods, regulating markets, promoting economic stability, and addressing income inequalities.
5. How does economics relate to other social sciences?
Ans. Economics is closely related to other social sciences such as sociology, political science, and psychology. It shares common concepts and methodologies with these disciplines. For example, economics and sociology both study human behavior, but economics focuses on economic behavior while sociology explores social behavior. Political science examines the role of government in economics, while psychology provides insights into individual decision-making processes that influence economic outcomes. These interdisciplinary connections help in gaining a comprehensive understanding of complex socio-economic issues.
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