CBSE Economics Class 12 Syllabus 2024-25

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 

Importance of the Chapters of Class 12 Economics Syllabus

Both parts include those topics that a student must learn. The first part talks about the economic terms and processes that banks and nations follow. Part B focuses on India and past experiments with its economy. 

Each chapter is interesting to learn and understand, not only for the exams but to know how a nation functions economically. Still, between these two, Macroeconomics is the most crucial chapter of Economics. This topic focuses on the decision-making, structure, behaviour and overall performance of an economy.

Project Work Class 12 - Economics

CBSE has allotted 20 Marks to the project out of 100. Students need to prepare one project file on any topic from the syllabus that relates to their learning. The objective of the project inclusion is to build interpersonal and communication skills among students. A project brings you a lot of new opportunities to learn and grow.

CBSE Class 12 Study Materials

Prescribed Books:

Conclusion:

The CBSE board, one of India's largest and most prestigious educational boards, prioritises creating a firm foundation for pupils from the start. Vedantu's CBSE Economics syllabus prepares students for exams while allowing parents to successfully assist their children's learning. The class 12 NCERT economics syllabus, which is connected with the CBSE, guarantees that Class 12 children receive a thorough education in a variety of disciplines. Students may develop curiosity, communicate their opinions boldly, and begin a successful academic journey with a well-structured syllabus in place.