West Bengal Board Economics Syllabus for Class 12

Standard : 12
Economics syllabus

PART – 1 (1) Micro Economies

(1) Economic Problem.
Nature causes m Emergence of economic activities.
Their Meaning & illustrations [nature of the problems of scarcity & Abundance (of means)

(2) Definitions of Economics.
Ideology of the eastern areas

* Views of kautilaya

Ideology of the Western Areas

* Adam Smith, Marshall Robbins.
Over & above the definitions acclaimed Universally.
(Is Economics a science or an Art or both. (Not based on being In formative but goal oriented)

2.1. Consumer behaviour & Demand.
Consumer Equlliriurn Meaning (Maximum Satisfaction) Views of Marshall Views of Prof. Hick Marshall
- Marginal Utility – Diminishing Marginal
- Dimishing Marginal – rate of returns.
- Utility & Price . – Equi marginal Utility. equilibrium

2. Demand

* Meaning – kind – determinant factors – Individual demand & market demand. Law of demand – demand schedule – Explanation through Downward falling DD Curve.
* Exceptions to the law of Demand m increase & Decrease (with a comparison of Expansion & contraction demand – Expan. & contract of D.D. (in relation to price.)

3. Elasticity of Demand
- Meaning –

* Price elasticity of DID.
* Income Elasticity of DD.

Unitary Elasticity of DD.
Methods of measuring price elasticity of DD.
a) Percentage Method.
b) Total Expenditure Method.
c) Geometric Method. (illustration based Explanation)

(1) Attitude of Producers & Supply –

* Equilibrium of Production – Meaning (maximum Profit)
* Meaning of supply – kind – Individual firm supply & Market supply.
* Factors determining supply.

(2) Law of supply.

* Supply Schedule m Upward rising SS curve – limitations.
* Expansion & Contraction of SS & Increase & Decrease of SS. (In relation to the price &
other factors)
* Methods of measuring price Elasticity of SS.
a) Percentage Method
b) Geometric Method
c) Total Income (revenue) Method

(3) Concept of production Cost.

* Real Cost
* Alternative Cost
* Financial Cost
Classification of costs based on time factor.
* SHORT RUN COST
* LONG RUN COST
In SHORT RUN COST the inter relationship between FIXED COST, VARIABLE COST,
TOTAL COST, AVERAGE COST, MARGINAL COST.

(4) CONCEPT OF REVENUE
The Concept of TOTAL Revenue, AVERAGE Revenue, MARGINAL Revenue, & their Inter Relationship.

* Nature of Market & Price determination.
- Meaning of market m kinds m classification of Market. Limitations.
* Kinds of Market
a) Perfectly competitive Market.
b) Monopoly Market.
c) Imperfectly comparative Market.
(Only meaning & their features are expected)
* Price Determination
- Price determination in perfectly competitive market
- Equilibrium price & the effects of charges in DD & SS on price.

5. Determination of cost of production

* Meaning of factors of production.
Four factors of production
(LAND, LABOUR, CAPITAL & ORGANISATION)
* Factors Demand – Meaning
* Factors Supply – Meaning
* Factor Cost determination in competitive market (Diagrammatic presentation is expected)

Part-II (02) MACRO ECONOMICS

1. Macro economics – Meaning, features & Functions
- Inter relationship between unit oriented Economics & Universal oriented, Economics.
2. National Income (NI)
- Explanation of all concepts related to National Income.
3. Measurement of National Income & Related Studies.

1. Circular Flow of National Income.
- Three Methods.
a) Three Methods ( Income, Experdutery + Production)
b) G.D.P
c) G.N.P.
d) N.D.P
e) N.N.P
(N.Y at Factor Cost & Market Price)
- National Income at Factor cost
- Total Income
- Real Income
2. Methods of Measuring MY
- Income
- Expenditure
- Production of output (some coin with three sides)

4. Income & Employment determination

1. Total DD & Total SS – The factors affecting them – spending Attitude & savings & Investment Attitude. “Average” & “Marginal” view)
2. Employment
- Employment – Meaning & types
- Unemployment- Meaning & types
(voluntary & other kinds)
- Boom (Max. DD) & the problem related to ft.
- Scarcity of DD (“stack”) & the problem related to it.

5. Finance (money) & Banking

* Money – meaning & Functions
* Supply of Money – Meaning
* Demand for Money – Meaning

Banking

* Meaning, Commercial banks – Meaning & Function
* Central Bank (R.B.I.) Meaning & Function

Budget
Budget of the Government – Meaning, Area of its operation, significance & kinds of budget

* Surplus budget & Deficit budget
* object of Budgeting

Balance of Payment

* Foreign Exchange – Meaning & the methods of deteraining foreign exchange
* Foreign Exchange Rate & Points of Distinction.
* Balance of Trade & Balance of Payment – Meaning