6.

ECONOMICS
Rationale
Economics is one of the social sciences, which has great influence on every human
being. As economic life and the economic go through change, 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 the 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 and 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 issued 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 provide opportunities to use information and communication
technologies to facilitate their learning process.

OBJECTIVES

1. Understanding of some basic economics concepts and development of economic reasoning

which the learners can apply in their day-to-day life as citizens, workers and consumers.

2. Realization of learner’s role in nation building and sensitivity to the economic issues that the
nation is facing today.

3. Equipment with basic tools of economic and statistics to analyses 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 view on any economics
issue and necessary skills to argue logically with reasoning.
Paper 1 3 Hours 80 Marks

Units Marks

PART A : INTODUCTORY MICRO ECONOMICS

1. Introduction 05
2. Consumer Behavior and Demand 12
3. Producer Behavior and Supply 12
4. Forms of Market and Price Determination 05
5. Simple applications of Tools of demand and supply cuves 06
40

PART B : INTROSUCTORY MACRO ECONMICS

6. National Income and Related Aggregates 12
7. Determination of income and Employment 08
8. Money and Banking 07
9. Government Budget and the Economy 08
10. Balance of Payments 05
40
Question wise distribution of marks :-

Type of Question No of Question Marks Total Marks

Objective Type/MCQ 16 01 16

Short Answer -I 04 02 08

Short Answer -II 06 03 18

Short Answer-III 02 04 08

Long Answer 06 05 30

Total 34 80
UNIT 1 : INTRODUCTION
What is microeconomics?

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

UNIT 2 : 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 3 : PRODUCER BEHAVIOUR AND SUPPLY

Production function - Returns to a 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 method.
Cost and Revenue - Short-run cost-total cost, Total variable cost, Total Fixed cost;
Average Fixed cost, Average Variable cost and Marginal Cost-meaning and their relationship.
Revenue total, average and marginal revenue-Producers' equilibrium-meaning and its
conditions in terms of total cost and total revenue.

UNIT 4 : 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 5 : SIMPLE APPLICATIONS OF TOOLS OF DEMAND AND SUPPLY CURVES

Part B : Introductory Macro-Economics

UNIT 6 : NATIONAL INCOME AND RELATED AGGREGATES

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 7 : 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 8 : MONEY AND BANKING

Money - meaning and functions.
Central bank - meaning and functions.
Commercial banks - meaning and functions.
Recent significant reforms and issues in India Banking System.
Privatization and Modernization.

UNIT 9 : GOVERNMENT BUDGET AND THE ECONOMY

Government budget - meaning and its components.
Objectives of government budget.
Classification of receipts - revenue and capital; classification of expenditure - revenue and
capital, plan and non-plan, and development and non-development. 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.
Down sizing the role of government : Meaning and implications.

UNIT 10 : BALANCE OF PAYMENTS

Foreign exchange rate - meaning (Fixed and Flexible), merits and demerits; Determination
through demand and supply
Balance of payments account - meaning and components.
A brief analysis about recent exchange rate issues.

BOOKS RECOMMENDED :
O;f"V vFkZ'kkL= ,d ifjp;
lef"V vFkZ'kkL= ,d ifjp; Published by N.C.E.R.T., NEW DELHI

Introductory Microeconomics

Introductory Microeconomics