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CBSE Class 12 Economics Syllabus with Marks Distribution 2022-23

Class – XII (2022-23)

Theory: 80 Marks
Time: 180 minutes

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
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
08 12
Total 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

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 2: Money and Banking

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, 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.
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

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

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

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.
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

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

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

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

Guidelines for Project Work in Economics (Class 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

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

Expected Checklist:

  • Introduction of topic/title
  • Identifying the causes, consequences and/or remedies
  • Various stakeholders and effect on each of them
  • Advantages and disadvantages of situations or issues identified
  • Short-term and long-term implications of economic strategies suggested in the course of research
  • Validity, reliability, appropriateness and relevance of data used for research work and for presentation in the project file
  • Presentation and writing that is succinct and coherent in project file
  • Citation of the materials referred to, in the file in footnotes, resources section, bibliography etc.

Mode of presentation/submission of the Project:

At the end of the stipulated term, each learner will present the research work in the Project File to the External and Internal examiner. The questions should be asked from the Research Work/ Project File of the learner. The Internal Examiner should ensure that the study submitted by the learner is his/her own original work. In case of any doubt, authenticity should be checked and verified.

CBSE Class 12 Economics Project Work : 20 Marks

The teacher will assess the progress of the project work in the exam in the following manner:

S. No. Heading Marks
1 Relevance of the topic 3
2 Knowledge Content/Research Work 6
3 Presentation Technique 3
3  Viva-voce 8
Total 20

Suggestive List of Projects for Class 12

  • Micro and Small Scale Industries
  • Food Supply Channel in India
  • Contemporary Employment situation in India
  • Disinvestment policy of the government
  • Goods and Services Tax Act and its Impact on GDP
  • Health Expenditure (of any state)
  • Human Development Index
  • Inclusive Growth Strategy
  • Self-help group
  • Trends in Credit availability in India
  • Monetary policy committee and its functions
  • Role of RBI in Control of Credit
  • Government Budget & its Components
  • Trends in budgetary condition of India
  • Exchange Rate determination – Methods and Techniques
  • Currency War – reasons and repercussions
  • Livestock – Backbone of Rural India
  • Alternate fuel – types and importance
  • Sarwa Siksha Abhiyan – Cost Ratio Benefits
  • Golden Quadrilateral- Cost ratio benefit
  • Minimum Support Prices x Relation between Stock Price Index and Economic Health of Nation
  • Waste Management in India – Need of the hour
  • Minimum Wage Rate – approach and Application
  • Digital India- Step towards the future
  • Rain Water Harvesting – a solution to water crises
  • Vertical Farming – an alternate way
  • Silk Route- Revival of the past
  • Make in India – The way ahead
  • Bumper Production- Boon or Bane for the farmer
  • Rise of Concrete Jungle- Trend Analysis
  • Organic Farming – Back to the Nature
  • Any other newspaper article and its evaluation on basis of economic principles
  • Any other topic