ECONOMICS (Code No. 30)
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
1. 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.
2. Realisation of learners’ role in nation building and sensitivity to the economic issues that the nation is facing today.
3. 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.
4. Development of understanding that there can be more than one views on any economic issue and necessary skills to argue logically with reasoning.
Class XI
Paper 1 3 Hours 100 Marks
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Units Periods Marks
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Part A : Statistics for Economics
1. Introduction 5 3
2. Collection, Organisation and Presentation of Data 25 12
3. Statistical Tools and Interpretation 64 30
4. Developing Projects in Economics 10 5
Total: 104 50
Part B: Indian Economic Development
5. Development Policies and Experience (1947-90) 18 10
6. Economic Reforms since 1991 14 8
7. Current Challenges facing Indian Economy 60 25
8. Development experience of India-A
comparison with neighbours 12 7
Total: 104 50
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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 5 Periods
What is Economics?
Meaning, scope and importance of statistics in Economics
Unit 2: Collection, Organisation and Presentation of data 25 Periods
Collection of data - sources of data - primary and secondary; how basic data is collected; 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.
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).
(iii) Arithmetic line graphs (time series graph).
Unit 3: Statistical Tools and Interpretation 64 Periods
(For all the numerical problems and solutions, the appropriate economic interpretation may be attempted. This means, the students need to solve the problems and provide interpretation for the results derived)
Measures of Central Tendency- mean (simple and weighted), median and mode
Measures of Dispersion - absolute dispersion (range, quartile deviation, mean deviation and standard deviation); relative dispersion (co-efficient of quartile-deviation, co-efficient of mean deviation, co-efficient of variation); Lorenz Curve: Meaning and its application.
Correlation - meaning, scatter diagram; Measures of correlation - Karl Pearson’s method (two variables ungrouped data) Spearman’s rank correlation.
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.
Unit 4: Developing Projects in Economics 10 Periods
The students may be encouraged to develop projects, which have primary data, secondary data or both. Case studies of a few organisations / outlets may also be encouraged. Some of the examples of the projects are as follows (they are not mandatory but suggestive):
(i) A report on demographic structure of your neighborhood;
(ii) Consumer awareness amongst households
(iii) Changing prices of a few vegetables in your market
(iv) Study of a cooperative institution: milk cooperatives
The idea behind introducing this unit is to enable the students to develop the ways and means by which a project can be developed using the skills learned in the course. This includes all the steps involved in designing a project starting from choosing a title, exploring the information relating to the title, collection of primary and secondary data, analyzing
the data, presentation of the project and using various statistical tools and their interpretation and conclusion.
Part B: Indian Economic Development
Unit 5: Development Policies and Experience (1947-90): 18 Periods
A brief introduction of the state of Indian economy on the eve of independence.
Common goals of Five Year Plans.
Main features, problems and policies of agriculture (institutional aspects and new agricultural strategy, etc.), industry (industrial licensing, etc,) and foreign trade.
Unit 6: Economic Reforms since 1991: 14 Periods
Need and main features - liberalisation, globalisation and privatisation; An appraisal of LPG policies
Unit 7: Current challenges facing Indian Economy: 60 Periods
Poverty- absolute and relative; Main programmes for poverty alleviation: A critical assessment; Rural development: Key issues - credit and marketing - role of cooperatives; agricultural diversification; alternative farming - organic farming
Human Capital Formation: How people become resource; Role of human capital in economic development; Growth of Education Sector in India
Employment: Growth, informalisation and other issues: Problems and policies
Infrastructure: Meaning-and Types: Case Studies: Energy and Health: Problems and
Policies- A critical assessment;
Sustainable Economic Development:
Meaning; Effects of Economic Development on Resources and Environment.
Unit 8: Development Experience of India: 12 Periods
A comparison with neighbours
India and Pakistan
India and China
Issues: growth, population, sectoral development and other developmental indicators.
Class XII
Paper 1 3 Hours 100 Marks
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Units Periods Marks
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Part A : Introductory Microeconomics
1. Introduction 10 4
2. Consumer Equilibrium and Demand 32 18
3. Producer Behaviour and Supply 32 18
4. Forms of Market and Price Determination 22 10
5. Simple applications of Tools of demand and supply 8 -
Total: 104 50
Part B: Introductory Macroeconomics
7. Money and Banking 18 8
8. Determination of Income and Employment 25 12
9. Government Budget and the Economy 17 8
10. Balance of Payments 14 7
Total: 104 50
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Part A : Introductory Microeconomics
Unit 1: Introduction 10 Periods
What is an economy? Central problems of an economy : what, how and for whom to produce; concepts of production possibility frontier and opportunity cost.
Distinctions between (a) planned and market economies, (b) positive and normative perspectives in economics, and (c) microeconomics and macroeconomics .
(Non-evaluative topics: Some basic tools in the study of economics - equation of a line, slope of a line, slope of a curve.)
Unit 2: Consumer Equilibrium and Demand 32 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, movement along and shifts in the demand curve; price elasticity of demand - factors affecting price elasticity of demand; measurenment of price elasticity of demand – (a) percentage-change method and (b) geometric method (linear demand curve); relationship between price elasticity of demand and total expenditure.
Unit 3: Producer Behaviour and Supply 32 Periods
Production function: Total Product, Average Product and Marginal Product.
Returns to a Factor.
Cost and Revenue: Short run costs - total cost, total fixed cost, total variable cost; Average fixed cost, average variable cost and marginal cost-meaning and their relationship.
Revenue - total, average and marginal revenue.
Producer's equilibrium-meaning and its conditions-under (a) total revenue-total cost approach and (b) marginal revenue-marginal cost approach.
Supply, market supply, determinants of supply, supply schedule, supply curve, movements along and shifts in supply curve, price elasticity of supply; measurement of price elasticity of supply – (a) percentagechange method and (b) geometric methods.
Unit 4: Forms of Market and Price Determination 22 Periods
Perfect competition - meaning and features.
Market Equilibrium under perfect competition – Determination of equilibrium price, Effects of shifts in demand and supply.
Non - Competitive Markets - monopoly, monopolistic competition, oligopoly - their meanings and features.
Unit 5: Simple applications of Tools of demand and supply 8 Periods
(not to be examined)
Part B : Introductory Microeconomics
Unit 6: National Income and related aggregates 30 Periods
Macroeconomics: Its meaning.
Some basic concepts of macroeconomics: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation.
Circular flow of income; Methods of calculating National Income – Value Added or Product method, Expenditure method, Income method.
Concepts and aggregates related to National Income:
Gross National Product (GNP), Net National Product (NNP), Gross and Net Domestic Product (GDP and NDP) - at market price, at factor cost; National Disposable Income (gross and net), Private Income, Personal Income and Personal Disposable Income; Real and Nominal GDP.
GDP and Welfare
Unit 7: Money and Banking 18 Periods
Money – its meaning and function.
Supply of money – Currency held by the public and net demand deposits held by commercial banks.
Money creation by the commercial banking system.
Central banking and its functions (example of the Reserve Bank of India).
Unit 8: Determination of Income and Employment 25 Periods
Aggregate demand and its components.
Propensity to consume and propensity to save (average and marginal).
Short–run fixed price in product market, equilibrium output; investment or output multiplier and the multiplier mechanism.
Meaning of full employment and involuntary unemployment.
Problems of excess demand and deficient demand; measures to correct them - change in government spending, availability of credit.
Unit 9: Government Budget and the Economy 17 Periods
Government budget - meaning, objectives and components.
Classification of receipts - revenue receipt and capital receipt; classification of expenditure – revenue expenditure and capital expenditure.
Various measures of government deficit - revenue deficit, fiscal deficit, primary deficit:their meaning and implications.
Fiscal policy and its role (non-evaluative topic).
Unit 10: Balance of Payments 14 Periods
Balance of payments account - meaning and components; balance of payments deficit-meaning.
Foreign exchange rate – meaning of fixed and flexible rates and managed floating.
Determination of exchange rate in a free market.