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Best Economics Classes for 12th Commerce

Economics is one of the social sciences, which has great influence on every human being. As economic life and the economy go through changes, the need to ground education in children’s own experience becomes essential. While doing so, it is imperative to provide them opportunities to acquire analytical skills to observe and understand the economic realities.

Class 12th CBSE Economics Term Wise Syllabus 

ECONOMICS (Code No. 030)  

Units Term 1  Marks Periods
Part A Introductory Macroeconomics    
  Money and Banking 6 08
  Government Budget and the Economy 6 15
  Balance of Payments 6 07
  Sub Total 18 30
Part B Indian Economic Development    
  Development Experience (1947-90) and Economic Reforms since 1991:
Indian Economy on the eve of Independence
Indian Economy (1950-90)
Liberalisation, Privatisation and Globalisation : An Appraisal
12 28
  Current challenges facing Indian Economy
Human Capital Formation
Rural development
10 17
  Sub Total 22 45
  Total Theory Paper  40 75
  Project Work 10



Units Term 1  Marks Periods
Part A Introductory Macroeconomics    
  National Income and Related Aggregates 10 23
  Determination of Income and Employment 12 22
  Sub Total 22 45
Part B Indian Economic Development    
  Current Challenges facing Indian Economy
Sustainable Economic Development
12 18
  Development Experience of India – A Comparison with Neighbours
Comparative Development Experience of India and its Neighbours
06 12
  Sub Total 18 30
  Grand Total 40 75
  Project Work 10



Term 1 – MCQ Based Question Paper

Part A: Introductory Macroeconomics

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.

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; balance of payments deficit meaning.
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.


Term 1 – Subjective Question Paper

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: 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

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.

Term-Wise Assessment of Project Work:

  • Project Work has broadly the following phases: Synopsis/ Initiation, Data Collection, Data Analysis and Interpretation, Conclusion.
  • The aspects of the project work to be covered by students can be assessed during the two terms.
  • 20 marks assigned for Project Work can be divided in to two terms.


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