CBSE Class 12 Economics Syllabus - Free PDF Download
CBSE Syllabus 2025-26 Class 12: The CBSE Class 12 Economics Syllabus for the examination year 2025-26 has been released by the Central Board of Secondary Education, CBSE. The board will hold the final examination at the end of the year following the annual assessment scheme, which has led to the release of the syllabus. The 2025-26 CBSE Class 12 Economics Board Exam will entirely be based on the most recent syllabus. Therefore, students must thoroughly understand the new CBSE syllabus to prepare for their annual exam properly.
The detailed CBSE Class 12 Economics Syllabus for 2025-26 is below.
Academic year:
CBSE Class 12 Economics Revised Syllabus
CBSE Class 12 Economics and their Unit wise marks distribution
CBSE Class 12 Economics Course Structure 2025-26 With Marking Scheme
Advertisements
Advertisements
Advertisements
Syllabus
1: Introductory Macroeconomics [Revision]
CBSE Class 12 Economics Syllabus
1 Introduction [Revision]
- How Macroeconomics Differs from Microeconomics
- Representative Goods and Sectors
- Macroeconomic Agents and Government Role
- Emergence of Macroeconomics
- Context of the Present Book of Macroeconomics
2 National Income Accounting [Revision]
- Meaning of Economic Wealth and Final Goods
- Introduction
- Flow of Production
- Final Goods
- Types of Final Goods
- Consumer Durables
- Intermediate Goods
- Stocks and Flows
- Investment and Depreciation
- Consumption vs Investment
- Circular Flow of Income
- Stocks, Flows, and Depreciation
- Capital Formation, Trade-off & Circular Flow of Income
- Circular Flow of Income and Methods of Calculating National Income
- Phases of Circular Flow
- Sectors Involved in Circular Flow
- Types of Circular Flow of Income
- Methods of Measurement of National Income
- Output Method/Product Method
- Introduction
- Approaches
- Precautions
- A Simple Two-Sector Example: Farmers and Bakers
- Understanding Value Added
- Tabular Representation of Value Added Calculation
- Depreciation and Capital Consumption
- Definition and Role of Inventories in Economics
- Inventories as Investment
- Expenditure Method
- Introduction
- Formula
- Breakdown of GNP Formula
- Classification
- Components
- Precautions
- Difficulties
- Output Method/Product Method
- Factor Cost, Basic Prices and Market Prices
- Some Macroeconomic Identities
- National Disposable Income
- Private Income
- Definition
- Constituents of Private Income
- National Income Aggregates
- Real GDP and Nominal GDP
- GDP and Welfare
3 Money and Banking [Revision]
- Concept of Money
- Introduction
- Definition: Money
- Features: Flowchart
- Real-Life Application
- Key Point Summary
- Functions of Money
- Primary Functions
- Secondary Functions
- Contingent Functions
- Real-Life Application
- Key Point Summary
- Demand for Money and Supply of Money
- Demand for Money
- Supply of Money
- Money Creation by Banking System
- Limits to Credit Creation and Money Multiplier
- Policy Tools To Control Money Supply
- Demand and Supply for Money : A Detailed Discussion
- The Transaction Motive
- The Speculative Motive
- Various Measures of Supply of Money
- Legal Definitions: Narrow and Broad Money
- Demonetisation
- Meaning
- Objectives
4 Determination of Income and Employment [Revision]
- Aggregate Demand and Its Components
- Introduction
- Desired (Ex ante) and Effective Demand (Ex post)
- Consumption
- Investment
- Meaning
- Definition
- Types of Investment
- Propensity to Invest
- Consumption and Saving Propensities
- Determination of Income in Two-sector Model
- Determination of Equilibrium Income in the Short Run
- Macroeconomic Equilibrium with Price Level Fixed
- Graphical Method
- Investment Function – Graphical Representation
- Aggregate Demand: Graphical Representation
- Supply Side of Macroeconomic Equilibrium
- Equilibrium
- Algebraic Method
- Effect of an Autonomous Change in Aggregate Demand on Income and Output
- The Multiplier Mechanism
- Introduction
- The Multiplier Mechanism in the Final Goods Market
- Investment Multiplier Formula
- Macroeconomic Equilibrium with Price Level Fixed
- Paradox of Thrift
- Introduction
- Explanation
- Diagrammatic Representation
- Equilibrium Output and Employment
5 Government Budget and the Economy [Revision]
- Government Budget
- Introduction
- Meaning
- Objectives of Government Budget
- Allocation Function of Government Budget
- Redistribution Function of Government Budget
- Stabilisation Function of Government Budget
- Components (Structure) of the Government Budget
- Revenue Budget
- Capital Budget
- Classification of Budget Receipts
- Revenue Receipts
- Capital Receipts
- Components of Budgetary Receipts
- Classification of Expenditure
- Revenue expenditure
- Capital expenditure
- Types of Budget
- Measures of Government Deficit
- Revenue Deficit
- Fiscal Deficit
- Primary Deficit
- Structure of Public Finance > Fiscal Policy
- Introduction
- Meaning
- Definition: Fiscal Policy
- Formulas
- Changes in Government Expenditure
- Changes in Taxes
- Explanation
- Example 5.1
- Example 5.2
- Example 5.3
- Debt
6 Open Economy Macroeconomics [Revision]
- Open Economy and Its Linkages
- Meaning of an Open Economy
- Ways Economies Are Connected
- Need for Foreign Exchange
- Introduction to Exchange Rate
- Concept of Balance of Payments
- Definition: Balance of Payments
- Introduction
- Current Account
- Introduction
- Components
- Balance on Current Account
- Capital Account
- Introduction
- Components
- Balance on Capital Account
- Balance of Payments Surplus and Deficit
- Autonomous and Accommodating Transactions
- Errors and Omissions
- Foreign Exchange Market
- Foreign Exchange Rate
- Demand for Foreign Exchange
- Supply of Foreign Exchange
- Determination of the Exchange Rate
- Flexible Exchange Rate
- Speculation
- Interest Rates and the Exchange Rate
- Income and the Exchange Rate
- Exchange Rates in the Long Run
- Fixed Exchange Rates
- Merits and Demerits of Flexible and Fixed Exchange Rate Systems
- Managed Floating Exchange Rate System
2: Indian Economic Development [Revision]
CBSE Class 12 Economics Syllabus
1 Indian Economy on the Eve of Independence [Revision]
- Introduction to Indian Economy on the Eve of Independence
- Low Level of Economic Development Under the Colonial Rule
- Agricultural Sector in India
- Industrial Sector
- Foreign Trade of India
- Meaning
- Definition
- Demographic Condition
- Occupational Structure
- Infrastructure
- Meaning and Types of Infrastructure
- Conclusion
2 Indian Economy 1950-1990 [Revision]
- Introduction to Indian Economy 1950-1990
- Five Year Plans (FYP)
- Introduction
- Core Goals of Five-Year Plans
- Plan-wise Overview (1951-2017)
- Real-Life Application
- Key Point Summary
- Agriculture
- Agricultural Seasons
- Agricultural Work
- Traditional Agriculture
- Land Reforms and Structural Changes in Agriculture
- Green Revolution and Agricultural Self-Sufficiency
- Subsidies and Support for Farmers
- Employment Trends and Sectoral Imbalance
- Industry and Trade
- Public and Private Sectors in Indian Industrial Development
- Industrial Policy Resolution 1956 (IPR 1956)
- Small-Scale Industry (SSI)
- Trade Policy: Import Substitution
- Effect of Policies on Industrial Development
- Conclusion
3 Liberalisation, Privatisation and Globalisation : An Appraisal [Revision]
- Introduction to the New Economic Policy (1991)
- Background of New Economic Policy (1991)
- Components of New Economic Policy
- Liberalisation
- Meaning
- Definition: Liberalisation
- Measures Taken for Liberalisation
- Liberalisation Process in India
- Features
- Positive Impact
- Negative Impact
- Real-Life Application
- Key Point Summary
- Privatisation
- Introduction
- Meaning
- Measures Taken for Privatisation
- Classification of Public Sector Units
- Need for Privatisation
- Privatization Process
- Advantages
- Real-Life Application
- Key Point Summary
- Globalisation
- Introduction
- Meaning
- Definition: Globalisation
- Measures Taken for Globalisation
- Features
- Positive Impact
- Real-Life Application
- Key Point Summary
- Liberalisation
- World Trade Organisation (WTO)
- Indian Economy During Reforms: An Assessment
- Foreign Direct Investment (FDI)
- Foreign Institutional Investment (FII),
- Growth and Employment
- Reforms in Agriculture
- Reforms in Industry
- Disinvestment
- Reforms and Fiscal Policies
- Conclusion
4 Human Capital Formation in India [Revision]
- Introduction to Human Capital Formation in India
- Introduction
- Meaning
- Sources of Human Capital
- Human Capital and Economic Growth
- Human Capital and Human Development
- State of Human Capital Formation in India
- Growth of Education Sector in India
- Growth in Government Expenditure on Education
- Educational Achievements in India
- Future Prospects
- Education for All - Still a Distant Dream
- Gender Equity - Better than Before
- Higher Education - a Few Takers
- Conclusion
5 Rural Development [Revision]
- Rural Development in India
- Introduction
- Meaning
- Challenges for Rural Development
- Importance: Flowchart
- Real-Life Application
- Key Point Summary
- Credit and Marketing in Rural Areas
- Credit
- Rural Banking - a Critical Appraisal
- Agricultural Market System
- Emerging Alternate Marketing Channels
- Government Initiatives and Challenges in Agricultural Marketing
- Diversification into Productive Activities
- Animal Husbandry
- Fisheries
- Horticulture
- Other Alternate Livelihood Options
- Sustainable Development and Organic Farming
- Benefits of Organic Farming
- Conclusion
6 Employment: Growth, Informalisation and Other Issues [Revision]
- The Nature and Importance of Work in Society
- Workers and Employment
- Participation of People in Employment
- Self-employed and Hired Workers
- Employment in Firms, Factories and Offices
- Growth and Changing Structure of Employment
- Introduction
- Trends in Employment Pattern (Sector-wise and Status-wise)
- Informalisation of Indian Workforce
- Concept of Unemployment
- Introduction
- Causes of Unemployment in India
- Impacts
- Real-Life Application
- Key Point Summary
- Government and Employment Generation
- Conclusion
7 Environment and Sustainable Development [Revision]
- Environment and Sustainable Development in India
- Introduction
- Definition
- Functions
- State of India’s Environment
- Chipko or Appiko — What’s in a Name?
- Major Causes of Land Degradation
- Urban Air Pollution and Industrial Impact
- The Need for Sustainable Development
- Concept of Sustainable Development
- Strategies for Sustainable Development
- Strategies
- Conclusion
8 Comparative Development Experiences of India and Its Neighbours [Revision]
- Comparative Development Strategies: India, China, and Pakistan
- Developmental Path - a Snapshot View
- China
- Pakistan
- Demographic Indicators
- Introduction
- Tabular Representation
- Gross Domestic Product and Sectors
- Annual Growth of Gross Domestic Product, 1980–2017
- Sectoral Share of Employment and GDP (%) in 2021
- Trends in Output Growth in Different Sectors, 1980–2015
- Indicators of Human Development
- Other Human Development Indicators
- Development Strategies - an Appraisal
- Conclusion
3: Introductory Microeconomics [Revision]
CBSE Class 12 Economics Syllabus
1 Introduction [Revision]
- A Simple Economy
- Central Problems of an Economy
- What is produced and in what quantities?
- How are these goods produced?
- For whom are these goods produced?
- Concepts of Production Possibility Frontier
- Introduction
- Example
- Organisation of Economic Activities
- The Centrally Planned Economy
- The Market Economy
- Positive and Normative Economics
- Microeconomics and Macroeconomics
2 Theory of Consumer Behaviour [Revision]
- Consumer Behaviour: The Problem of Choice
- Basic Concepts of Microeconomics > Utility
- Introduction
- Definition: Utility
- Features
- Types: Flowchart
- Real-Life Application
- Key Point Summary
- Cardinal Approach (Utility Analysis)
- Introduction
- Key Concepts
- Consumer Equilibrium
- Real-Life Application
- Key Point Summary
- Derivation of Demand Curve in the Case of a Single Commodity
- Ordinal Utility Analysis/Indifference Curve Analysis
- Introduction: Ordinal Utility
- Definition: Indifference Curve Analysis
- Origin
- Indifference Schedule
- Indifference Curve
- Indifference Map
- Marginal Rate of Substitution (MRS)
- Assumptions
- Real-Life Application
- Key Point Summary
3 Production and Costs [Revision]
- Production Function
- Meaning of Production Function
- Algebraic form of production function
- Important Points
- Short-run and Long-run (time concepts)
- Types of Production Functions
- Table: Short run vs Long run
- Table: Returns to a factor vs Returns to scale
- Economist's Corner: Tjalling Koopmans
- Key Point Summary
- Basics of Production Theory
- Introduction
- Concept of Production
- Scientific Definitions
- Real-Life Application
- Key Point Summary
- Variation of Output in the Short-Run Returns to a Factor
- Introduction
- Key Concepts
- Table Showing Production
- Real-Life Application
- Key Point Summary
- Relation Between Total, Average and Marginal Product
- Law of Variable Proportions
- Meaning
- Definition: Law of Variable Proportions
- Statement of the Law
- Assumptions
- Important Terms
- Table: Example (Applied to Agriculture)
- Stages of the Law
- Real-Life Application
- Key Point Summary
- Average and Marginal Physical Products
- Changes in Production
- Returns to a Factor
- Returns to Scale
- Table: Stages of Returns to Scale
- Types of Returns to Scale
- Returns to a Factor vs Returns to Scale
- Law of Variable Proportions
- Definition: Law of Variable Proportions
- Key Point Summary
- Cost - Fixed Cost
- Cost -variable Cost
- Behaviour of Cost in the Short - Run
- Concept and Importance
- Types of Cost Functions
- Fixed vs. Variable Costs
- Real-Life Application
- Key Point Summary
- Relationship Between Average Variable Cost and Average Total Cost and Marginal Cost
- Concept of Opportunity Cost
- Revenue Concepts
- Marginal Revenue
- Introduction
- Formula
- Example
- Marginal Revenue
- Producer's Equilibrium
- Meaning of a producer
- Meaning of producer's equilibrium
- Conditions of producer's equilibrium
- Producer's equilibrium
- Key Point Summary
- Law of Supply
- Introduction
- Definition
- Key Points
- Supply Schedule
- Statement of the Law
- Supply Curve
- Assumptions
- Exceptions
- Real-Life Application
- Key Point Summary
- Supply Schedule
- Market Supply Schedule
- Introduction
- Table
- Market Supply Curve
- Market Supply Schedule
- Distinguish between Stock and Supply
- Determinants of Supply
- Introduction
- Main Determinants of Supply
- Supply Function
- Determinants of Elasticity of Supply
- Importance of Elasticity of Supply
- Real-Life Application
- Key Point Summary
- Movements Along and Shifts in Supply Curve
- Supply Curve
- Movement Along Supply Curve
- Shift of the Supply Curve
- Factors Causing Shift in Supply Curve
- Table: Expansion vs Increase in Supply
- Table: Contraction of Supply vs. Decrease in Supply
- Reasons Behind the Shift in Supply Curve
- Real-Life Application
- Key Point Summary
- Measurement of Elasticity of Supply
- Introduction
- Percentage Method
- Problem 1
- Problem 2
- Problem 3
- Problem 4
- Problem 5
- Problem 6
- Problem 7
- Problem 8
- Geometric Method
- Time Period and Elasticity
- Real-Life Application
- Methods of Measurement of National Income
- Flowchart
- Cost Concepts > Marginal Cost
- Meaning of Marginal Cost
- Marginal Cost Formula
- Example
- Table
- Key Characteristics and Relationships
- Real-Life Application
- Key Point Summary
- The Law of Diminishing Marginal Product
- Shapes of Product Curves
Shapes of Total Product, Marginal Product and Average Product Curves
- Costs in Long Run Period
- Introduction
- Long Run Total Cost
- Long Run Average Cost
- Names for LAC
- Relationship: LAC and SAC
- Long Run Marginal Cost
- Relation Between LMC and LAC
- Key Point Summary
- Returns to Scale
4 The Theory of the Firm Under Perfect Competition [Revision]
- Concept of Market
- Introduction
- Definition: Market
- Essential Market Conditions
- Types of definition of market
- Features of a market
- Real-Life Application
- Key Point Summary
- Market Equilibrium
- Determination of Market Equilibrium
- Effect of Simultaneous change in Demand and Supply on Equilibrium Price
- Effects of Demand Shifts (Supply Constant)
- Effects of Supply Shifts (Demand Constant)
- Combined Effects
- Stepwise Clarity
- Real-Life Application
- Key Point Summary
- Classification of Market > Based on Competition
- Perfect Competition
- Introduction
- Definitions: Perfect Competition
- Features
- Pure competition vs perfect competition
- Assumptions
- Key Point Summary
- Perfect Competition
- Imperfect Competition
- Introduction
- Definition: Imperfect Competition
- Economist's contribution
- Conditions leading to imperfect competition
- Real-Life Application
- Key Point Summary
- Oligopoly
- Meaning of Oligopoly
- Definitions: Oligopoly
- Features
- Types
- Classification
- Indeterminacy of Price and Output under Oligopoly
- Reasons for Indeterminate Price and Output
- Real-Life Application
- Key Point Summary
- Classification of Market Structure
- Broad classification of market structure
- Main market forms
- Key Point Summary
- Market Forms - Perfect Oligopoly
- Market Forms - Imperfect Oligopoly
- Equilibrium Price
- Applications of Tools of Demand and Supply Price Control
- Price Control
- Price Ceiling (Maximum Price)
- Price Floor (Minimum Price)
- Implications of Price Ceiling Policy
- Effects of Minimum Price (Price Floor)
- Key Point Summary
- Price Ceiling
- Maximum and Minimum
- Price Floor
- Revenue Concepts
- Meaning of Revenue
- Total Revenue (TR)
- Average Revenue (AR)
- Marginal Revenue (MR)
- Behaviour under different market structures
- Profit Maximisation Objective
- Introduction: Profit-maximisation objective
- Definition of Profit
- Normal profit and pure (economic) profit
- Role of profit in resource allocation
- Equilibrium of the firm and profit maximisation rules
- Economist note: Maurice Allais
- Real-Life Application
- Key Point Summary
- Determinants of a Firm’s Supply Curve
Determinants of a Firm’s Supply Curve
- Technological Progress
- Input Prices
- Supply Schedule
- Market Supply Schedule
- Introduction
- Table
- Market Supply Curve
- Market Supply Schedule
- Price Elasticity of Supply
- Price Elasticity of Supply
- Definition: Elasticity of Supply
- Meaning of Elasticity of Supply
- Formula
- Types of Supply Elasticity
- Distinction Between Contraction of Supply and Decrease in Supply
- Real-Life Application
- Key Point Summary
5 Market Equilibrium [Revision]
- Simple Monopoly in the Commodity Market
Simple Monopoly in the Commodity Market
- Market Demand Curve is the Average Revenue Curve
- Total, Average and Marginal Revenues
- Marginal Revenue and Price Elasticity of Demand
- Short Run Equilibrium of the Monopoly Firm
- Other Non - Perfectly Competitive Markets
Other Non-perfectly Competitive Markets
- Monopolistic Competition
- How do Firms behave in Oligopoly?
