F.A.I.P.S DIVIDED SYLLABUS ECONOMICS (030) CLASS XII
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1 F.A.I.P.S DIVIDED SYLLABUS ECONOMICS (030) CLASS XII MONTH NO. OF WORKING DAYS UNIT/TOPICS SUB-TOPIC MARCH- APRIL UNIT I: INTRODUCTION UNIT II: CONSUMER BEHAVIOUR AND DEMAND What is an economy? Central problems of an economy Production possibility frontier & Opportunity cost Meaning of microeconomics and macroeconomics Consumer's equilibrium: meaning of utility, marginal utility, law of diminishing marginal utility, conditions of consumer's equilibrium using marginal utility analysis. Indifference curve analysis of consumer's equilibriumthe consumer's budget (budget set and budget line), preferences of the consumer (indifference curve, indifference map), conditions of consumer's equilibrium Demand, market demand, determinants of demand, demand schedule, demand curve and its slope Movement along and shifts in the demand curve price elasticity of demand - factors affecting price elasticity of demand
2 Measurement of price elasticity of demand (a) percentage-change method (b) geometric method (linear demand curve) Relationship between price elasticity of demand and total expenditure. UNIT III : PRODUCER'S BEHAVIOUR AND SUPPLY UNIT IV: UNIT VI : MONEY AND BANKING Supply, market supply, determinants of supply, supply schedule, supply curve and its slope movements along and shifts in supply curve price elasticity of supply measurement of price elasticity of supply (a) percentage change method (b) geometric method Market Equilibrium under perfect competition: Determination of equilibrium price Effects of shifts in demand and supply Simple application of demand and supply: price ceiling, price floor. Money Its meaning and functions Supply of money Currency held by the public and net demand deposits held by the commercial banks Money creation by the commercial banking system Central Bank and its functions(example of RBI):Bank of issue, Governments bank, banker s bank, control of credit through Bank rate, CRR, SLR, Repo rate and reverse repo rate, Open market operations, Margin
3 requirements. MAY 20 UNIT VIII : GOVERNMENT BUDGET AND THE ECONOMY UNIT IX : BALANCE OF PAYMENTS JUNE 5 1 ST TERM EXAMINATION AUGUST SEPTEMBER UNIT V : NATIONAL INCOME AND RELATED AGGREGATES Government budget - meaning, objectives and components. Classification of receipts - revenue receipt and capital receipt Classification of expenditure revenue expenditure and capital expenditure. Various measures of government deficit - revenue deficit, fiscal deficit, primary deficit: their meaning and implications. Balance of payments account - meaning and components; Balance of payments deficit and surplus-meaning and its implication. Foreign exchange rate meaning of fixed and flexible rates and managed floating. Determination of exchange rate in a free market. Macroeconomics: meaning Concepts of macroeconomics: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation
4 Circular flow of income Methods of calculating National Income (a)value Added or Product method (b)expenditure method (c)income method. Concepts and aggregates related to National Income: GNP, NNP, GDP & NDP - at market price, at factor cost; National Disposable Income (gross and net), Private Income, Personal Income & Personal Disposable Income Real and Nominal GDP. GDP and Welfare UNIT III : PRODUCER'S BEHAVIOUR AND SUPPLY (contd..) Production function: Total Product, Average Product and Marginal Product. Returns to a Factor. Cost: Short run and long run costs - total cost, total fixed cost, total variable cost; Average fixed cost, average variable cost & marginal cost-meaning & their relationship. Revenue: total, average and marginal revenuemeaning and their relationships. Producer's equilibrium-meaning and its conditionsunder (a)marginal revenue-marginal cost approach
5 OCTOBER 20 UNIT VII : DETERMINATION OF INCOME AND EMPLOYMENT UNIT IV: (contd..) NOVEMBER 21 CASE STUDIES 2 ND TERM EXAMINATION DECEMBER 17 UNIT IV: (contd..) JANUARY 20 1 ST MODEL EXAMINATION Aggregate demand and its components. Propensity to consume and propensity to save (average and marginal) Short run fixed price in product market, equilibrium output; investment multiplier & the multiplier mechanism. Meaning of full employment and involuntary unemployment. Problems of excess demand and deficient demand; measures to correct them - change in government spending,taxes and money supply. Perfect competition - meaning and features. Non - Competitive Markets - monopoly, monopolistic competition. Discuss multidisciplinary questions oligopoly - their meaning & features
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