Economics

Elective
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Background :

Economics is one of the social sciences which has a lot of influence on every human being yet was received little attention in the school curriculum in India. 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 with opportunities to acquire analytical skills to observe and understand the economic realities. Bringing economics as an abstract knowledge in the early stages of school education would promote rote learning of the subject.

At the higher secondary stage, 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.

Economics courses are being 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 to be introduced to economics as a theory of abstraction.

The economics course 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 issues which are broader and invisible in nature. The academic skills that they acquire 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 developing economic reasoning which the learners can apply in their day-to-day life as citizens, workers and consumers.
  2. Realisation or learners’ role in nation building and sensitive them to the economic issues that the nation is facing today.
  3. To equip learners with basic tools of economics and statistics to analyse economic issues. This is pertinent for even those who may not pursue this course beyond the higher secondary stage.
  4. To develop an understanding that there can be more than one view on any economic issue and to develop the skills to argue logically with reasoning.

SYLLABUS FOR HIGHER SECONDARY FINAL YEAR COURSE

One Paper Time: Three Hours Marks: 100
Unit No Title Marks Periods
Part A : INTRODUCTORY MICROECONOMICS
Unit I Introduction 04 10
Unit II Consumer Behaviour and Demand 13 25
Unit III Producer Behaviour and Supply 23 36
Unit IV Forms of Market and Price Determination 10 20
Unit V Simple applications of Tools of demand and supply - 12
Part B : INTRODUCTORY MACROECONOMICS
Unit VI National Income and Related Aggregates 15 28
Unit VII Determination of Income and Employment 12 25
Unit VIII Money and Banking 08 18
Unit IX Government Budget and the Economy 08 17
Unit X Balance of Payments 07 14
Total 100 205

Unitwise Distribution of Course contents

Part-A : INTRODUCTORY MICROECONOMICS
This course introduces the learner to economics as a science of abstraction and reasoning. It introduces some basic concepts and tools to understand economic issues of an individual or a firm and how decisions are taken in variety of markets. It also intends to provide exposure to the learners on how choices are mare and how a variety of statistical tools are used to optimally allocate the resources.

Unit-I : Introduction

What is microeconomics?

Central problems of an economy, production possibility curve and opportunity cost.

Unit-II : Consumer Behaviour and Demand

Consumer’s Equilibrium : meaning and attainment of equilibrium through Utility Approach: One and two commodity cases.

Demand : market demand, determinants of demand, demand schedule, demand curve, movement along and shifts in demand curve, price elasticity of demand, measurement of price elasticity of demand–percentage, total expenditure and geometric methods.

Unit-III : Producer Behaviour and Supply

Production function : returns to factor and returns to scale.

Supply : market supply, determinants of supply, supply schedule, supply curve, movement along and shifts in supply curve, price elasticity of supply, measurement of price elasticity of supply– percentage and geometric methods.

Cost and Revenue : Concepts of costs, short-run cost curves (fixed and variable costs; total, average and marginal costs); concepts of revenue– total, average and marginal revenue and their relationship. Producer’s equilibrium– with the help of MC and MR.

Unit-IV : Forms of Market and Price Determination

Forms of market– perfect competition, monopoly, monopolistic competition– their meaning and features.

Price determination under perfect competition– equilibrium price, effects of shifts in demand and supply.

Unit-V : Simple applications of Tools of demand and supply Curves

The teachers can be given the flexibility to choose the issues : rationing, floors and ceilings and Food Availability Decline (FAD) Theory (the teachers may also choose alternative examples that are simple and easy to understand).

Part-B : INTRODUCTORY MACROECONOMICS
The overall working of an economy and some of its economic theorisation are introduced in this course. The learners will get some basic idea of how the government regulates the functioning of economic aspects of a country though accounting of the production activities, running financial institutions, budgeting and the accounting of its economic interaction with other countries. The impact it will have on citizens is also briefly introduced.

Unit-VI : National Income and Related Aggregates– Basic Concepts and Measurement

Macroeconomics : meaning.

Circular flow of income, concepts of GDP, GNP, NDP, NNP (at market price and factor cost), National Disposable Income (gross and net); Private Income, Personal Income and Personal Disposable Income.

Measurement of National Income– Value Added method, Income method and Expenditure method.

Unit-VII : Determination of Income and Employment

Aggregate demand, aggregate supply and their components.

Propensity to consume and propensity to save (average and marginal)

Meaning of involuntary unemployment and full employment.

Determination of income and employment : two sector model.

Concept of investment multiplier and its working.

Problems of excess and deficient demand.

Measures to correct excess and deficient demand– availability of credit, change in government spending.

Unit-VIII : Money and Banking

Money : meaning, evolution and functions

Central bank : meaning and functions.

Commercial banks : meaning and functions.

Recent significant reforms and issue in Indian Banking System : privatisation and modernisation.

Simple random sampling with and without replacement - method of selection of SRS making use of Table of random number, Estimation Population mean and total, use of formula - mean and estimated population total. Limitations of SRS. Idea of stratified random sampling. Estimation of population mean (method of allocation not included). Preparation of Questionnaire and schedule. Idea of pilot survey.

Unit-IX : Government Budget and the Economy

Government budget– meaning and its components.

Objective of government budget.

Classification of receipts– revenue and capital; classification of expenditure– revenue and capital, plan and non-plan and developmental and non-developmental.

Balanced budget, surplus budget and deficit budget : meaning and implications.

Revenue deficit, fiscal deficit and primary deficit : meaning and implications; measures to contain different deficits.

Downsizing the role of government : meaning and implications.

Unit-X : Balance of Payments

Foreign exchange rate– meaning (fixed and flexible), merits and demerits; determination through demand and supply.

Balance of payments accounts– meaning and components.

A brief analysis about recent exchange rate issues.

Recommended Textbooks

  1. Economics Part I, Textbook for Class XII, Published by NCERT
  2. Economics Part II, Textbook for Class XII, Published by NCERT