Economics Class 12 Term-II Syllabus

The syllabus consists of four units divided into two parts: (A) Introductory Macroeconomics (B) Indian Economic Development.

Exam Structure

Units   Marks
Part A Introductory Macroeconomics  
Unit 1 National Income and Related Aggregates 10
Unit 3 Determination of Income and Employment 12
Part B Indian Economic Development  
Unit 7 Current Challenges facing Indian Economy 12
Unit 8 Development Experience of India - A Comparison with Neighbours 6
  Total 40

Part A: Introductory Macroeconomics

Unit 1: National Income and Related Aggregates

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 and Welfare

Unit 3: Determination of Income and Employment

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 through Bank Rate, CRR, SLR, Repo Rate and Reverse Repo Rate, Open Market Operations, Margin requirement.

Part B: Indian Economic Development

Unit 7: Current challenges facing Indian Economy

Employment: Growth and changes in work force participation rate in formal and informal sectors; 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: economic growth, population, sectoral development and other Human Development Indicators

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