ECONOMICS

(2024-25)
Rationale
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.

At senior secondary stage, the learners are in a position to understand abstract ideas, exercise
the power of thinking and to develop their own perception. It is at this stage, the learners are
exposed to the rigour of the discipline of economics in a systematic way.

The economics courses are introduced in such a way that in the initial stage, the learners are
introduced to the economic realities that the nation is facing today along with some basic
statistical tools to understand these broader economic realities. In the later stage, the learners
are introduced to economics as a theory of abstraction.

The economics courses also contain many projects and activities. These will provide
opportunities for the learners to explore various economic issues both from their day-to-day
life and also from issues, which are broader and invisible in nature. The academic skills that
they learn in these courses would help to develop the projects and activities. The syllabus is
also expected to provide opportunities to use information and communication technologies to
facilitate their learning process.

Objectives:
 Understanding of some basic economic concepts and development of economic
reasoning which the learners can apply in their day-to-day life as citizens, workers and
consumers.
 Realisation of learners’ role in nation building and sensitivity to the economic issues
that the nation is facing today.
 Equipment with basic tools of economics and statistics to analyse economic issues. This
is pertinent for even those who may not pursue this course beyond senior secondary
stage.
 Development of understanding that there can be more than one view on any economic
issue and necessary skills to argue logically with reasoning.

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 ECONOMICS
CLASS – XI (2024-25)
Units Periods
Part A Statistics for Economics
Introduction 10
Collection, Organisation and Presentation of Data 30
Statistical Tools and Interpretation 50

Part B Introductory Microeconomics

Introduction 10
Consumer's Equilibrium and Demand 40
Producer Behaviour and Supply 35
Forms of Market and Price Determination under 25
perfect competition with simple applications

200
Part C Project Work 20

Part A: Statistics for Economics

In this course, the learners are expected to acquire skills in collection, organisation and
presentation of quantitative and qualitative information pertaining to various simple
economic aspects systematically. It also intends to provide some basic statistical tools
to analyse, and interpret any economic information and draw appropriate inferences.
In this process, the learners are also expected to understand the behaviour of various
economic data.

Unit 1: Introduction 10 Periods

What is Economics?
Meaning, scope, functions and importance of statistics in Economics

Unit 2: Collection, Organisation and Presentation of data 30 Periods

Collection of data - sources of data - primary and secondary; how basic data
iscollected with concepts of Sampling; methods of collecting data; some important
sources of secondary data: Census of India and National Sample Survey Organisation.

Organisation of Data: Meaning and types of variables; Frequency Distribution.

2
 Presentation of Data: Tabular Presentation and Diagrammatic Presentation of Data:
(i) Geometric forms (bar diagrams and pie diagrams), (ii) Frequency diagrams
(histogram, polygon and Ogive) and (iii) Arithmetic line graphs (time series graph).

Unit 3: Statistical Tools and Interpretation 50 Periods

For all the numerical problems and solutions, the appropriate economic interpretation may
beattempted. This means, the students need to solve the problems and provide interpretation
forthe results derived.

Measures of Central Tendency- Arithmetic mean, Median and Mode

Correlation – meaning and properties, scatter diagram; measures of correlation - Karl

Pearson's method (two variables ungrouped data) Spearman's rank correlation (Non-
Repeated Ranks and Repeated Ranks).

Introduction to Index Numbers - meaning, types - Wholesale Price Index, Consumer

Price Index and index of industrial production, uses of index numbers; Inflation and Index
Numbers, Simple Aggregative Method.

Part B: Introductory Microeconomics

Unit 4: Introduction 10 Periods
Meaning of microeconomics and macroeconomics; positive and normative economics

What is an economy? Central problems of an economy: what, how and for whom to
produce; concepts of Production Possibility Frontier and Opportunity Cost.

Unit 5: Consumer's Equilibrium and Demand 40 Periods

Consumer's equilibrium - meaning of Utility, Marginal Utility, Law of Diminishing
Marginal Utility, conditions of consumer's equilibrium using marginal utility analysis.

Indifference curve analysis of consumer's equilibrium-the consumer's budget (budget

set and budget line), preferences of the consumer (indifference curve, indifference
map) and conditions of consumer's equilibrium.

Demand, market demand, determinants of demand, demand schedule, demand curve

and its slope, movement along and shifts in the demand curve; price elasticity of
demand - factors affecting price elasticity of demand; measurement of price elasticity of
demand – percentage-change method and total expenditure method.

3
Unit 6: Producer Behaviour and Supply 35 Periods
Meaning of Production Function – Short-Run and Long-
RunTotal Product, Average Product and Marginal Product.
Returns to a Factor
Cost – Short run costs - Total Cost, Total Fixed Cost, Total Variable Cost; Average Cost;
Average Fixed Cost, Average Variable Cost and Marginal Cost - meaning and their
relationships.
Revenue – Total Revenue, Average Revenue and Marginal Revenue - meaning and their
relationship.
Producer's Equilibrium - meaning and its conditions in terms of Marginal Revenue-
Marginal Cost.
Supply, market supply, determinants of supply, supply schedule, supply curve and its
slope, movements along and shifts in supply curve, price elasticity of supply;
measurement of price elasticity of supply - percentage-change method.

Unit 7: Perfect Competition - Price Determination and simple applications.

25 Periods
Perfect competition - Features; Determination of market equilibrium and effects of
shifts in demand and supply. (Short Run Only)

Simple Applications of Demand and Supply: Price ceiling, Price floor.

Part C: Project in Economics 20 Periods

Guidelines as given in Class XII curriculum

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 ECONOMICS
CLASS - XII (2024-25)

Unit Periods
s
Part Introductory Macroeconomics
A
National Income and Related Aggregates 30
Money and Banking 15
Determination of Income and Employment 30
Government Budget and the Economy 17
Balance of Payments 18

Part Indian Economic Development

B
Development Experience (1947-90)
28
and Economic Reforms since 1991
Current Challenges facing Indian Economy 50
Development Experience of India – A Comparison with
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Neighbours
Theory Paper (40+40 = 80 Marks)
200

Part Project Work 20

C

Part A: Introductory Macroeconomics

Unit 1: National Income and Related Aggregates 30 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 Deflator, GDP and Welfare

5
Unit 2: Money and Banking 15 Periods
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, Cash Reserve Ratio
(CRR), Statutory Liquidity Ratio (SLR), Repo Rate and Reverse Repo Rate, Open
Market Operations, Margin requirement.

Unit 3: Determination of Income and Employment 30 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 17 Periods

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 18 Periods

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

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

Human Capital Formation: How people become resource; Role of human capital
ineconomic 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
onResources and Environment, including global warming

Unit 8: Development Experience of India: 12 Periods

A comparison with
neighboursIndia and Pakistan
India and China
Issues: economic growth, population, sectoral development and other Human
Development Indicators
Part C: Project in Economics 20 Periods

Prescribed Books:
1. Statistics for Economics, NCERT
2. Indian Economic Development, NCERT
3. Introductory Microeconomics, NCERT
4. Macroeconomics, NCERT

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 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 and
arguments
 demonstrate the learning of economic theory
 follow up aspects of economics in which learners have interest
 develop the communication skills to argue
logicallyThe expectations of the project work are that:
 learners will complete only ONE project in each academic session
 project should be of 3,500-4,000 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
learnerthrough 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
Scope of the project:
Learners may work upon the following lines as a suggested flow chart:
Choose a title/topic

Collection of the research

material/data

Organization of

material/dataPresent

material/data

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 Analysing the material/data for

conclusionDraw the relevant conclusion

Presentation of the Project Work

9
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.

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. 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.

Suggestive List of Projects:

Class XI
 Effect on PPC due to various government  Invisible Hand (Adam Smith)
policies
 Opportunity Cost as an Economic Tool  Effect of Price Change on a Substitute Good
(taking real life situations) (taking prices from real life visiting
localmarket)
 Effect on Equilibrium Prices in Local  Effect of Price Change on a Complementary
Market(taking real life situation or recent Good (taking prices from real life visiting
news) local market)
 Solar Energy, a Cost-Effective Comparison  Bumper Production- Boon or Bane for
with Conventional Energy Sources theFarmer
 Any other newspaper article and its  Any other topic
evaluation on basis of economic principles

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 Class
XII
 Micro and Small Scale Industries  Food Supply Channel in India
 Contemporary Employment situation in India  Disinvestment policy of the government
 Goods and Services Tax Act and its Impact  Health Expenditure (of any state)
on GDP
 Human Development Index  Inclusive Growth Strategy
 Self-help group  Trends in Credit availability in India
 Monetary Policy Committee and its functions  Role of RBI in Control of Credit
 Government Budget & its Components  Trends in budgetary condition of India
 Exchange Rate determination – Methods and  Currency War – reasons and repercussions
Techniques
 Livestock – Backbone of Rural India  Alternate fuel – types and importance
 Sarva Shiksha Abhiyan – Cost Ratio Benefits  Golden Quadrilateral- Cost ratio benefit
 Minimum Support Prices  Relation between Stock Price Index and
Economic Health of a Nation
 Waste Management in India – Need of the  Minimum Wage Rate – Approach
hour andApplication
 Digital India- Step towards the future  Rain Water Harvesting – A solution to
watercrisis
 Vertical Farming – An alternate way  Silk Route- Revival of the past
 Make in India – The way ahead  Bumper Production- Boon or Bane for
thefarmer
 Rise of Concrete Jungle- Trend Analysis  Organic Farming – Back to the Nature
 Aatmanirbhar Bharat  e-Rupee (e- ₹)
 Sri Lanka’s Economic Crisis  Sustainable Development Goals (SDG’s)
 Environmental Crisis  Comparative Study of Economies
(Maximum three economies)
 New Education Policy (NEP) 2020: A  G-20: Inclusive and Action Oriented
Promise for a New Education System
 Amrit Kaal: Empowered and  Cashless Economy
InclusiveEconomy
 Any other newspaper article and its  Any other topic
evaluation on basis of economic principles

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