ASSEB Class 12 Economics Syllabus & Marking Scheme

Higher Secondary Final Year Course | Total Marks: 100 (80 Theory + 20 Project)

Unit 1: National Income and Related Aggregates 10 Marks | 30 Periods

• Macroeconomics: Meaning, emergence of macroeconomics; Major sectors in an economy (Household, Firms, Government, External).
• Basic Concepts in Macroeconomics: Consumption goods, capital goods, final goods, intermediate goods; Stocks and flows; Investment, Gross investment, Net investment, and Depreciation.
• Circular Flow of Income: Two-sector model.
• Methods of Calculating National Income: Value Added or Product Method, Expenditure Method, Income Method.
• Price Concepts: Factor Cost, Basic Prices, and Market Prices.
• 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 and factor cost; Personal Income, Personal Disposable Income, National Disposable Income, and Private Income; Real and Nominal GDP.
• GDP and Welfare.

Unit 2: Determination of Income and Employment 12 Marks | 22 Periods

• Aggregate Demand and its components.
• Consumption function, Propensity to consume and propensity to save (Average and Marginal), Investment function.
• Income determination in two sector model.
• Determination of Equilibrium Income in the short run: Macroeconomic equilibrium with price level fixed, effect of an autonomous change in aggregate demand on income and output, investment multiplier and its mechanism.
• Meaning of full employment, Deficit demand, Excess demand.

Unit 3: Money and Banking 06 Marks | 12 Periods

• Money: Meaning and its functions; Demand for money; Motives for demand for money.
• Supply of Money: Various measures of supply of money.
• Central Bank and its functions.
• Commercial Banks: Meaning and functions; Credit creation by commercial banks; Limits to credit creation and money multiplier.
• Policy tools to control money supply.
• Demonetization.

Unit 4: Government Budget and the Economy 06 Marks | 12 Periods

• Government budget: Meaning, objectives, and components.
• Classification of receipts: Revenue receipts and Capital receipts.
• Classification of expenditure: Revenue expenditure and Capital expenditure.
• Balanced Budget, Surplus Budget, and Deficit Budget.
• Measures to correct government deficit: Fiscal Policy (Changes in government expenditure and changes in tax, public debt); Fiscal Responsibility and Budget Management (FRBM) Act, 2003; GST (Concept only).
• Measures of Government Deficit: Revenue deficit, Fiscal deficit, Primary deficit.

Unit 5: Open Economy 06 Marks | 14 Periods

• Balance of Payments (BoP): Meaning, Current Account, Capital Account, BoP surplus and deficit.
• Foreign exchange market, Foreign exchange rate: Fixed exchange rate, Flexible exchange rate, and Managed floating exchange rate.
• Determination of foreign exchange rate under fixed and flexible exchange rate.
• Merits and demerits of flexible and fixed exchange rate.

Unit 6: Development Experience (1947-1990) 07 Marks | 13 Periods

• 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 and Trade: Industrial Policy Resolution 1956; Small Scale Industry (Role and Importance); Trade Policy (Import Substitution).

Unit 7: Economic Reforms since 1991 05 Marks | 10 Periods

• Rationale of Economic Reforms.
• Features and appraisals of Liberalisation, Globalisation, and Privatisation (LPG Policy).
• Appraisal of economic reforms in India.

Unit 8: Current Challenges Facing Indian Economy 22 Marks | 55 Periods

• Human Capital Formation: Human capital, sources of human capital, human capital vs human development, state of human capital formation in India, Education sector in India.
• Rural Development: Key issues (credit and marketing in rural areas), agricultural market system, diversification into productive activities, sustainable development, and organic farming.
• Employment: Growth and changes in workforce participation rate in formal and informal sectors; problems and policies.
• Environment and Sustainable Development: Definition and functions of environment, sustainable development (meaning & strategies), nature of environmental challenges facing India.

Unit 9: Development Experiences of India: A Comparison with Neighbours 06 Marks | 07 Periods

• Comparative analysis: India and Pakistan | India and China.
• Issues of Comparison: Demographic indicators, Economic growth, Sectoral development, and Human Development Indicators (HDI).

Guidelines for Project Work (Class XII)

Expectations:

• Learners will complete ONE project per academic session.
• Project length should be 3500 - 4000 words (excluding diagrams & graphs), preferably handwritten.
• It must be an independent, self-directed study.

Suggested Steps for Project Work:

1. Choose a Title/Topic
2. Collection of Research Material/Data
3. Organization of Material/Data
4. Presentation and Analysis of Material/Data
5. Drawing Relevant Conclusions and Final Submission

Marking Scheme for Project Work

Suggestive List of Projects (Class XII)

• Micro and Small Scale Industries
• Food Supply Channel in India
• Contemporary Employment Situation
• Disinvestment Policy of Government
• Goods and Service Tax (GST) & GDP
• Health Expenditure (State Study)
• Human Development Index (HDI)
• Inclusive Growth Strategy
• Self-Help Groups (SHGs)
• Trends in Credit Availability in India
• Functions of Commercial & Central Bank
• Environmental Challenges in India
• Monetary Policy Committee
• Role of RBI in Control of Credit
• Government Budget & Components
• Exchange Rate Determination Methods
• Digital India & Future Prospects
• Rain Water Harvesting
• Minimum Support Price (MSP)
• Organic Farming
• Assam Regional Economic Issues