CBSE Class 12 Economics Syllabus 2020-21| Check Latest Exam Pattern

CBSE has released Class 12 Economics Syllabus 2020-21. The board has decided to reduce the syllabus in this academic session due to ongoing coronavirus crisis. The annual board examination will be of 80 marks, with a duration of three hours while project work will be of 20 Marks.

CBSE Class 12 Economics Syllabus 2020-21

Units -Marks 
Part AIntroductory Macroeconomics-
-National Income and Related Aggregates10
-Money and Banking06
-Determination of Income and Employment12
-Government Budget and the Economy06
-Balance of Payments06
Part B Indian Economic Development-
-Development Experience (1947-90) and Economic Reforms since 1991 12
-Current Challenges facing Indian Economy 22
-Development Experience of India – A Comparison with Neighbours06
Part CProject Work20

Part A: Introductory Macroeconomics

Unit 1: National Income and Related Aggregates 23 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 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.

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.

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.
• Measures of government deficit - revenue deficit, fiscal deficit, primary deficit their meaning.

Unit 5: Balance of Payments

• Balance of payments account - meaning and components; Foreign exchange rate - meaning of fixed and flexible rates and managed floating.

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

• Poverty- absolute and relative; Main programmes for poverty alleviation: A critical assessment;
• Human Capital Formation: How people become resource; Role of human capital in
economic development;
• Rural development: Key issues - credit and marketing - role of cooperatives; agricultural diversification;
• Employment: Growth and changes in work force participation rate in formal and informal sectors; problems and policies
• Infrastructure: Meaning and Types: Case Studies: 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

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

Download Class 12 Economics Syllabus 2020-21

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