CBSE Class 12 Economics Syllabus 2024-25 Board Exams

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April 22, 2025

CBSE Class 12 Economics Syllabus 2024-25 Board Exams: Students who are studying in Class 12 must go through CBSE Economics Syllabus Class 12 before starting their exam preparation. CBSE Economics Syllabus Class 12 includes two parts i.e., Part A Introductory Microeconomics, and Part B Indian Economic Development. Students must go through topics and subtopics included in the CBSE Economics Syllabus Class 12 to understand the topic more deeply and secure a good score in the examination.

Check out: CBSE Class 12th Books

CBSE Economics Syllabus Class 12 Overview

Class 12th Economics syllabus provides a comprehensive understanding of economic concepts, theories, and applications. Students can check the overview of CBSE Economics Syllabus Class 12 below.

Part A: Introductory Microeconomics: This section introduces students to the fundamental principles of microeconomics, focusing on individual economic agents. The units included are:

Introduction: Basics of microeconomics, central problems of an economy, and production possibilities curve.
Consumer’s Equilibrium and Demand: Understanding utility, budget constraints, and consumer equilibrium.
Producer Behaviour and Supply: Analyzing production, costs, and the behavior of firms in different market structures.
Forms of Market and Price Determination: Examining different market structures and the determination of prices.

Part B: Indian Economic Development: This section explores the broader aspects of economics, focusing on the economy as a whole. The units included are:

National Income and Related Aggregates: Understanding concepts like national income, consumption, and investment.
Money and Banking: Examining the role of money, banking, and the Central Bank in the economy.
Determination of Income and Employment: Analyzing the aggregate demand and supply in the economy.
Government Budget and the Economy: Understanding government expenditure, taxation, and budgetary policies.
Balance of Payments: Examining international trade, exchange rates, and balance of payments.

Check out: CBSE Class 12 Indian Economic Development Books

Class 12th Economics Syllabus in Detail

Students can check the topic-wise Class 12th Economics Syllabus in the table below. The Economics syllabus of CBSE includes topics such as National Income and Related Aggregates, Money and Banking, Determination of Income and Employment 30 Periods, Balance of Payments, Current challenges facing the Indian Economy, Development Experience in India, etc.

CBSE Class 12th Economics Syllabus
Unit	Unit name	Description
Part A: Introductory Macroeconomics
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 Deflator, GDP and Welfare
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. The central bank and its functions (example of the Reserve Bank of India): Bank of Issues, 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, and Margin requirement.
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.
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.
5	Balance of Payments	Balance of payments account – meaning and components; Balance of payments – Surplus and Deficit Foreign exchange rate – meaning fixed and flexible rates and managed to float. Determination of exchange rate in a free market, Merits and demerits of the flexible and fixed exchange rate. Managed Floating exchange rate system
Part B: Indian Economic Development
6	Development Experience (1947-90) and Economic Reforms since 1991	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 privatisation (LPG policy); Concepts of Demonetization and GST
7	Current challenges facing the 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 workforce 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
8	Development Experience in India	A comparison with neighbours India and Pakistan India and China Issues: economic growth, population, sectoral development and other Human Development Indicators

Check out: CBSE Class 12 Economics Sample Question Papers for 2025

CBSE Economics Syllabus Class 12 for Project Work

Students are assigned 20 points in the project work for CBSE Class 12 Economics Syllabus. Every student needs to present their project to the internal and external examiners at the end of the specified period. Students are asked questions based on their projects. Students can check the topics of projects in the table below.

CBSE Economics Syllabus Class 12 for Project Work
Micro and Small Scale Industries	Alternate fuel – types and importance
Food Supply Channel in India	Sarwa Siksha Abhiyan – Cost Ratio Benefits
Contemporary Employment Situation in India	Golden Quadrilateral- Cost ratio benefit
The disinvestment policy of the government	Minimum Support Prices
Goods and Services Tax Act and its Impact on GDP	Relation between Stock Price Index and Economic Health of Nation
Health Expenditure (of any state)	Waste Management in India – Need of the hour
Human Development Index	Minimum Wage Rate – approach and Application
Inclusive Growth Strategy	Digital India- Step Towards the Future
Self-help group	Rain Water Harvesting – a solution to water crises
Trends in Credit Availability in India	Vertical Farming – an alternate way
Monetary Policy Committee and its functions	Silk Route- Revival of the past Make in India – The way ahead
Role of RBI in Control of Credit	Bumper Production- Boon or Bane for the farmer
Government Budget & its Components	Rise of Concrete Jungle- Trend Analysis
Trends in the budgetary condition of India	Organic Farming – Back to the Nature
Exchange Rate Determination – Methods and Techniques	Any other newspaper article and its evaluation based on economic principles
Currency War – reasons and Repercussions	Any other topic
Livestock – Backbone of Rural India	-

Check out: Commerce Books

Preparation Tips for Class 12th Economics Syllabus

Students who are preparing for CBSE Economics subject may follow the below preparation tips.

Understand the Syllabus: Students should start by carefully reading the entire syllabus for Class 12 Economics. It is divided into two parts: Microeconomics and Macroeconomics. Knowing the topics to study will help students stay organized and focused.

Use NCERT Textbooks: The primary resource for students should be the NCERT Economics textbooks. They are written in simple language and cover all the topics needed for exams. Students should read each chapter thoroughly and pay attention to the examples provided

Make a Study Schedule: Students should create a study plan that includes specific times for studying Economics each day or week. Breaking down the syllabus into smaller sections and assigning them to different days ensures that all topics are covered without feeling rushed as the exam approaches.

Focus on Key Concepts: Students should identify important topics that often appear in exams, like demand and supply, market types (such as perfect competition and monopoly), national income, and inflation. Taking time to understand these concepts deeply is crucial. Students can try explaining them in their own words to check their understanding.

Take Notes: While studying, students should make notes of important definitions, formulas, and key points. Writing summaries of each chapter in their own words will help with retention and make revision easier. Highlighting or underlining key terms in textbooks can also be beneficial.

Practice Diagrams: Economics involves many graphs and diagrams, like demand and supply curves or the business cycle. Students should practice drawing these diagrams.

CBSE Economics Syllabus Class 12 FAQs

Q1. What are the main topics covered in the Class 12 Economics syllabus?

Ans. The syllabus includes Microeconomics, which covers concepts like demand, supply, market structures, and consumer behavior, and Macroeconomics, which includes topics like national income, inflation, and fiscal policy.

Q2. How important are NCERT textbooks for Class 12 Economics?

Ans. NCERT textbooks are very important as they are aligned with the syllabus and provide clear explanations of concepts. Most exam questions are based on these books.

Q3. How can students effectively study for Economics?

Ans. Students should create a study schedule, focus on understanding key concepts, take notes, practice diagrams, and solve sample papers to reinforce their learning.

Q4. What are some effective revision strategies for Economics?

Ans. Effective strategies include summarizing notes, reviewing diagrams, quizzing oneself, and discussing topics with peers. Regularly revisiting material helps reinforce understanding.

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