CBSE SYLLABUS FOR ECONOMICS CLASS-XII YEAR, 2020-2021

 

   SYLLABUS FOR ECONOMICS     CLASS – XII (2020-21)

The subject of Economics becomes easy to understand when studied in-depth with real-life examples and applying the same in real life too. Effective reading, learning, practicing, and timely revising the concepts will help to get good marks in the subject.

The syllabus for Class 12^th Economics- Introductory Macroeconomics (Part A) and Indian Economic Development (Part-B) as per CBSE pattern with marks and period distribution of different units for the academic year 2020-21 is provided below. Students must go through it before planning their studies. 

          ECONOMICS

          CLASS – XII 

             (2020-21)

Theory: 80 Marks                                            Exam Time: 3 Hours  

Project: 20 Marks

Units	Introductory Macroeconomics	Marks	Periods
Part A	National Income and Related Aggregates	10	28
	Money and Banking	06	15
	Determination of Income and Employment	12	27
	Government Budget and the Economy	6	15
	Balance of Payments	6	15
		40	100
Part B	Indian Economic Development
	Development Experience (1947-90) and Economic Reforms since 1991	12	28
	Current Challenges facing Indian Economy	22	60
	Development Experience of India – A Comparison with Neighbours	06	12
	Theory Paper (40+40 = 80 Marks)	40	100
Part C	Project Work	20	20

Part A: Introductory Macroeconomics (40 Marks)

 Unit 1: National Income and Related Aggregates         (28 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) & Net Domestic Product (NDP) - at market price, at factor cost; Real &Nominal GDP.

GDP and Welfare.

 

Unit 2: Money and Banking                                          (15 Periods)                                                                   

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         (27 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              (15 Periods)              

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                                      (15 Periods)              

Balance of payments account - meaning and components; the 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 (40 Marks)

Unit 6: Development Experience (1947-90) and Economic Reforms since 1991                                       (28 Periods)

A brief introduction of the state of the 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 privatization (LPG policy);

Concepts of demonetization and GST

 

Unit 7: Current challenges facing Indian Economy            (60 Periods)

 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; 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 workforce 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:                          (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 Marks)

Guidelines as given in class XII curriculum        (20 Periods)

Prescribed Books:

 Statistics for Economics, NCERT

Indian Economic Development, NCERT

 Introductory Microeconomics, NCERT

Macroeconomics, NCERT

 Supplementary Reading Material in Economics, CBSE

Note: The above publications are also available in Hindi Medium.

Suggested Question Paper Design Economics (Code No. 030) 

Class XII (2020-21)

 March 2021 Examination

 

Marks: 80                                                                         Duration: 3 hrs.

S. NO	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	Analyzing, 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%

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 & 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 3500-4000 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 learners about plagiarism and the importance of quoting the source of the information to ensure the 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

Collection of the research material/data

Organisation of material/data

Present material/data

Analysing the material/data for conclusion

Draw the relevant conclusion

Presentation of the Project Work

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, 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. Effective reading, learning, practicing, and timely revising the concepts will help to get good marks in the subject. 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.

Marking Scheme:

Marks are suggested to be given as –

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

Suggestive List of Projects:

Class XI

Effect on PPC due to various government    policies

Opportunity Cost as an Economic Tool (taking real-life situations)

Effect on equilibrium Prices in Local Market (taking real-life situation or recent news).

Solar Energy, a Cost EffectiveCost-EffectiveComparison with Conventional Energy Sources.

Any other newspaper article and its evaluation on basis of economic principles.

Invisible Hand (Adam Smith)

Effect of Price Change on a Substitute Good (taking prices from real-life visiting local market)

Effect of Price Change on complementary  Good (taking prices from real-life visiting local market)

Bumper Production- Boon or Bane for the Farmer

Any other topic

Class XI

Micro and Small Scale Industries

Contemporary Employment situation in India

Human Development Index

Goods and Services Tax Act and its Impact on GDP

Self-help group

Monetary policy committee and its functions

Government Budget & its Components

Food Supply Channel in India

Disinvestment policy of the government

Health Expenditure (of any state)

Inclusive Growth Strategy

Trends in Credit availability in India

Role of RBI in Control of Credit

Trends in budgetary condition of India

Exchange Rate determination – Methods and Techniques

  Livestock – Backbone of Rural India

  Sarwa Siksha Abhiyan – Cost Ratio Benefits

  Minimum Support Prices

  Waste Management in India – Need of the hour

  Currency War – reasons and repercussions

  Alternate fuel – types and importance

  Golden Quadrilateral- Cost ratio benefit

  Relation between Stock Price Index and Economic Health of Nation

  Minimum Wage Rate – approach and Application