CBSE Class 12 Economics Syllabus

The CBSE Economics syllabus for class 12 introduces fundamental economic concepts at the senior secondary level, starting with an examination of current national economic realities and essential statistical tools for understanding them. As students progress, they dive deep into economic theories and abstractions. For the 2024-25 academic year, the syllabus covers a broad range of topics including, national income, money and banking, income and employment determination, the government budget and economy, and the balance of payments. It addresses the definition of national income, methods of calculation, and its applications, as well as the concept of money, its uses, and types. The syllabus also explores income and employment definitions, factors affecting them, and different forms of unemployment. It includes an analysis of the government budget’s components and its economic impact, and covers the balance of payments, including its components and types of deficits. Additionally, students will undertake a project on an economics topic of their choice. Let us understand more about the syllabus in today’s blog:

CBSE Class 12 Economics Syllabus 2024-25: An Overview

The 12 class Economics syllabus aims to provide students with a thorough understanding of economic principles and their applications. Here’s a breakdown of the syllabus:

Unit 1: National Income and Related Aggregates

• Macroeconomics Basics: Understanding macroeconomics, including key concepts like consumption and capital goods, final vs. intermediate goods, stocks and flows, and investment.
• Circular Flow of Income: Learning the two-sector model and methods for calculating National Income such as Value Added, Expenditure, and Income methods.
• National Income Aggregates: Exploring Gross National Product (GNP), Net National Product (NNP), Gross Domestic Product (GDP), and Net Domestic Product (NDP), including their market price and factor cost, and distinctions between Real and Nominal GDP.
• GDP and Welfare: Examining the relationship between GDP and welfare.

Unit 2: Money and Banking

• Money: Understanding the definition, functions, and supply of money, including currency held by the public and demand deposits in commercial banks.
• Money Creation: How commercial banks create money.
• Central Bank Functions: Overview of the Reserve Bank of India’s roles, including issuing bank, government bank, banker’s bank, and credit control through various rates and operations.

Unit 3: Determination of Income and Employment

• Aggregate Demand: Components and concepts of aggregate demand.
• Consumption and Savings: Propensity to consume and save (average and marginal).
• Equilibrium and Multiplier: Short-run equilibrium output and the investment multiplier.
• Employment: Concepts of full employment, involuntary unemployment, and measures to address excess and deficient demand through government spending, taxes, and money supply adjustments.

Unit 4: Government Budget and the Economy

• Government Budget: Definitions, objectives, and components of the government budget.
• Receipts and Expenditure: classification into revenue and capital receipts and expenditure.
• Budget Types: Balanced, Surplus, and Deficit Budgets and measures of government deficit.

Unit 5: Balance of Payments

• Balance of Payments: Definition, components, and issues of surplus and deficit.
• Foreign Exchange Rates: Fixed, flexible, and managed floating rates, including their determination, merits, and demerits.
• Part B: Indian Economic Development

Unit 6: Development Experience (1947-90) and Economic Reforms Since 1991

• Pre-Independence Economy: A brief on the Indian economy at independence and the objectives of Five-Year Plans.
• Agriculture and Industry: Features, issues, and policies related to agriculture, industry (including IPR 1956 and SSI), and foreign trade.
• Economic Reforms: Liberalisation, globalisation, privatisation, demonetisation, and GST.

Unit 7: Current Challenges Facing the Indian Economy

• Human Capital: Role in economic development and the growth of the education sector.
• Rural Development: Issues like credit, marketing, cooperatives, agricultural diversification, and organic farming.
• Employment: Workforce participation in formal and informal sectors, and related policies.
• Sustainable Development: Impact of economic development on resources and the environment, including global warming.

Unit 8: Development Experience of India

• Comparative Analysis: Economic development of India compared with neighbours like Pakistan and China, focusing on growth, population, sectoral development, and human development indicators.

CBSE Class 12 Economics Syllabus 2024-25: Marks Distribution

Familiarity with the course structure allows students to anticipate the exam format and types of questions, reducing anxiety and improving confidence. This preparation helps in practicing relevant questions and understanding the exam’s expectations, leading to better performance. Furthermore, knowing the course layout enables students to plan their revision sessions more effectively. The 12 class Economics syllabus course structure is discussed in the table below:

CBSE Class 12 Economics Question Paper Design

The question paper design for the 12 class Economics syllabus is outlined below. A well-structured question paper design can significantly aid students in their exam preparation and performance. By clearly outlining the types of questions, weightage, and topics covered, it helps students understand the exam format and allocate time effectively for each section. It also provides insight into the balance between objective and subjective questions, enabling students to prepare accordingly.

CBSE Class 12 Economics Project Work

At the end of the stipulated term-period, every student must present their research work, documented in the project file, to both the external and internal examiners. Questions during the evaluation will be based on the student’s research or project file. The internal examiner must verify that the submitted work is the student’s original creation. If there are any concerns, the authenticity should be thoroughly checked and confirmed. The CBSE class 12 Economics project carries a total of 20 marks. The marks distribution is discussed below:

Suggestive Project Work Topics:

Download Previous Year Question Paper Class 12 Economics

Practicing the class 12 Economics question paper 2024 for the CBSE Board helps students achieve good scores in the 2025 CBSE 12th Economics Board Exam. Students preparing for the 2024 exam are encouraged to download and practice the previous year’s class 12 Economics question papers. The link below provides access to the CBSE class 12 Economics question paper 2024 in PDF format. For those seeking year-wise question papers, this website offers easy downloads of past CBSE class 12 Economics papers. Click here to visit the website.

Download Economics Sample Paper Class 12 with Solution

Economics questions in class 12 range from easy to challenging, but all are based on the official CBSE 12 class Economics syllabus. To aid students, a sample question paper for class 12 CBSE Economics with solutions has been provided. Practicing these solved sample papers allows students to learn effective answer-writing techniques, which can help improve their scores. Additionally, using these sample papers enables students to identify gaps in their exam preparation. Click here to visit the website.

How to use Economics CBSE Class 12 Syllabus?

To effectively use the class 12th CBSE economics syllabus, students should first familiarise themselves with the entire syllabus, which covers key areas such as microeconomics, macroeconomics, and international economics. By reviewing the syllabus thoroughly, they can understand how various topics are connected. After gaining a clear understanding of the syllabus, students should establish specific learning objectives. These goals might include mastering particular concepts or improving overall economic knowledge, which will help them stay focused and motivated. Creating a structured study plan is crucial to making the most of the syllabus. Students should break down the topics into smaller, manageable sections and allocate specific time slots each week to focus on each part. Additionally, identifying areas where they may need extra help allows them to seek out the necessary resources and support. This approach ensures that they cover all essential material efficiently and are well-prepared for the exam.

Key Takeaways

The CBSE class 12 Economics syllabus for the 2024-25 academic year is designed to provide students with a comprehensive understanding of key economic concepts and their real-world applications. By introducing fundamental topics such as national income, money and banking, income and employment, and the balance of payments, the syllabus ensures that students build a strong foundation in economics. As they progress through the course, students gain insights into both theoretical and practical aspects of the subject, culminating in a project that allows them to explore economic issues of personal interest. This structured approach not only prepares students for their examinations but also equips them with the knowledge and skills necessary to analyse and address economic challenges, both in their academic pursuits and future careers.

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