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Monday, November 9, 2026

ECONOMICS (Subject Code 030)
Class XI-XII (2025-26)

Rationale

Economics is one of the social sciences, which has great influence on every human being. As economic life and the economy go through changes, 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 and 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 are 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 issues 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 help to develop the projects and activities. The syllabus is also expected to provide opportunities to use information and communication technologies to facilitate their learning process.

Objectives:

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Understanding of some basic economic concepts and development of economic reasoning which the learners can apply in their day-to-day life as citizens, workers and consumers.

•

Realisation of learners’ role in nation building and sensitivity to the economic issues that the nation is facing today.

•

Equipment with basic tools of economics and statistics to analyse economic issues. This is pertinent for even those who may not pursue this course beyond senior secondary stage.

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Development of understanding that there can be more than one view on any economic issue and necessary skills to argue logically with reasoning.

Class XI-XII (2026-27)

2.ECONOMICS (Subject Code 030)

CLASS – XI (2025-26)

Theory: 80 Marks 3 Hours

Project: 20 Marks

Part A

Units Marks

1. Statistics for Economics Introduction 15

Collection, Organisation and Presentation of Data

Statistical Tools and Interpretation 25

Part B

Introductory Microeconomics

Introduction 04

Consumer's Equilibrium and Demand 14

Producer Behaviour and Supply 14

Forms of Market and Price Determination under perfect competition with simple applications 08

Part C

Project Work

Part A: Statistics for Economics

In this course, the learners are expected to acquire skills in collection, organisation and presentation of quantitative and qualitative information pertaining to various simple economic aspects systematically. It also intends to provide some basic statistical tools to analyse, and interpret any economic information and draw appropriate inferences. In this process, the learners are also expected to understand the behaviour of various economic data.

Unit 1: Introduction

What is Economics?

Meaning, scope, functions and importance of statistics in Economics

Unit 2: Collection, Organisation and Presentation of data

Collection of data - sources of data - primary and secondary; how basic data is collected with concepts of Sampling; methods of collecting data; some important sources of secondary data: Census of India and National Sample Survey Organisation.

Organisation of Data: Meaning and types of variables; Frequency Distribution. Class - XI (2026-27)

Presentation of Data: Tabular Presentation and Diagrammatic Presentation of Data: (i) Geometric forms (bar diagrams and pie diagrams), (ii) Frequency diagrams (histogram, polygon and Ogive) and (iii) Arithmetic line graphs (time series graph).

Unit 3: Statistical Tools and Interpretation

For all the numerical problems and solutions, the appropriate economic interpretation may be attempted. This means, the students need to solve the problems and provide interpretation for the results derived.

Measures of Central Tendency- Arithmetic mean, Median and Mode

Correlation – meaning and properties, scatter diagram; measures of correlation - Karl Pearson's method (two variables ungrouped data) Spearman's rank correlation (Non-Repeated Ranks and Repeated Ranks).

Introduction to Index Numbers - meaning, types - Wholesale Price Index, Consumer Price Index and index of industrial production, uses of index numbers; Inflation and Index Numbers, Simple Aggregative Method.

Part B: Introductory Microeconomics

Unit 4: Introduction

Meaning of microeconomics and macroeconomics; positive and normative economics

What is an economy? Central problems of an economy: what, how and for whom to produce; concepts of Production Possibility Frontier and Opportunity Cost.

Unit 5: Consumer's Equilibrium and Demand

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 equilibrium-the consumer's budget (budget set and budget line), preferences of the consumer (indifference curve, indifference map) and 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; measurement of price elasticity of demand – percentage-change method and total expenditure method.

Unit 6: Producer Behaviour and Supply

Meaning of Production Function – Short-Run and Long-Run

Total Product, Average Product and Marginal Product.

Returns to a Factor

Cost – Short run costs - Total Cost, Total Fixed Cost, Total Variable Cost; Average Cost; Average Fixed Cost, Average Variable Cost and Marginal Cost - meaning and their relationships.

Revenue – Total Revenue, Average Revenue and Marginal Revenue - meaning and their relationship.

Producer's Equilibrium - meaning and its conditions in terms of Marginal Revenue-Marginal Cost.

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 - percentage-change method.

Unit 7: Perfect Competition - Price Determination and simple applications.

Perfect competition - Features; Determination of market equilibrium and effects of shifts in demand and supply. (Short Run Only)

Simple Applications of Demand and Supply: Price ceiling, Price floor.

Part C: Project in Economics

Guidelines as given in Class XII curriculum

Wednesday, May 6, 2020

CENTERAL BANK AND ITS FUNCTIONS

CENTRAL BANKS AND ITS FUNCTIONS

INTRODUCTION OF CENTRAL BANK

Central bank is a apex institute of Monetary and Banking system of a country.

Central bank organizes, supervised and regulate and develop the monetary system of the country.

Reserve Bank of India working as Central bank in India. It was established a shareholder bank in 1939 and Nationalized on 1st January 1949.

Sh. Shaktikanta Das

RBI Governor

FUNCTIONS OF CENTRAL BANK

1. Bank issues or Currency authority.

2. Bankers to the government,

3. Banker’s bank and supervisor.

4. Controller of Credit and Money supply.

Bank issues or Currency Authority.

1. Central bank has a sole monopoly to issue currency notes .Currency notes issued by Central bank has legal tender money.

2. The Central bank issue currency on the basis of MINIMUM RESERVE SYSTEM.

Under this system RBI maintained a minimum reserve of Rs. 200 Crores of which Rs.115 Crore is in the form of gold and remaining Rs. 85/- Crores is in the form of securities.

RBI issues all Currency notes except one Rs. Note and Coins.

Bankers to the Government,

1.As a Apex bank, RBI provide some facilities to the Government as Commercial Banks given to the public.

2. It received deposits from government and collect cheque and drafts and deposits in government account.

3. It provides cash to the govt.

4. It makes payment from govt. behalf of government.

5. It advances short term loan to the government.

6. It supply foreign currency to the govt. for external transactions.

As Fiscal agent and as adviser

(i) As a fiscal agents to the govt., it manages the public debt.

(ii). It collect taxes and other payments on the behave of the government.

(iii) .RBI represent to the govt. in international banks like IMF, World Bank.

As adviser to the govt.: - Central Bank gives advise to the govt. on all financial and economic matters, likes trade policy, foreign exchange policy.

Banker’s Bank

1. Banker’s bank,

2. As a lender of last resort,

3. As a clearing agent,

4. As a custodian of last resort.

AS A SUPERVISOR

Central Banks supervise and control on the commercial banks.

The regulation of banks like licensing, expansion of branch and management etc.

Central bank also do quarterly inspection of the Commercials banks etc.

Controller of Credit and Money Supply.

•Controller of Credit and Money Supply: -

Controlling the credit is the most important function of Central banks. By control of credit , It means , expansion or contradiction of credit as per need of the economy. Being as apex institute Central Bank uses, Bank Rate, Open market operation and Change in reserve ratio.

•Controller of Credit and Money Supply.

•Control of Credit through: -

•1. Bank Rate,

•2.CRR,

•3.SLR,

•4.Repo Rate

•5. Reverse Repo Rate,

•6.Open Market Operations,

7. Margin requirement.

•BANK RATE

• Bank rate is the interest rate at which Central bank provided loan to commercial banks without any security.

• It is only for Commercials banks not the public.

•Now we will discuss the uses of Bank Rate: -

1.In the situation of Excess Demand,

2. In the situation of deficient demand.

•Use of Bank Rate in Excess Demand
(Leads inflationery situation)

•In the situation of Excess demand: -

1.Central Bank increases their lending rates, which discourage the banks to borrow more from Central bank because it increases the cost of borrowing of commercial banks.

2.High bank rate compel the Commercial Bank to increase lending rate to the public.

3.High rate of interest leads less consumption expenditure and investment expenditure, which control the excess demand.

•Use of Bank Rate in Deficient Demand
(leads deflationary situation)

In the situation of Deficient demand : -

1. Central bank decreases the bank rates that encourage the commercial banks to take more loan because decrease of Bank rate leads to decrease the cost of borrowing to the commercial banks, investment will increase.

2. Decrease in the bank rate further commercial bank decrease lending rate to the public , that will encourages the consumers to take loans and consumption expenditure will increase that further increases.

More Consumption expenditure and investment expenditure will control the deficient demand.

•Repo Rate and Reverse Repo rate
(in the situation of Inflationary demand.)

•Repo Rate

Repo rate is that rate at which commercial bank borrow money from Central Bank against financials security with agreement to re purchase them at a later date and as per the rate determined at the time of borrowing. Increase in Repo rate will leads to decrease the situation of inflationary demand, because HH reduce consumption expenditure and start saving and reduce expenditure on investment.

•Reverse Repo rate

It is rate at which Central Bank borrow money from commercial bank. In the situation of excess demand leading to increase inflation , reverse repo rate increases, it leads to encourage the commercial banks to keep more fund to Central bank for more profit and leads to decrease in lending capacity of lending loan to public and investors , inflationary situation will in control.

•OPEN MARKET OPERATION

OMO is another quantitative instrument to control money supply or correct excess demand and deficit demand. In the economy.

We will study OMO in two situation: -

(i)Excess demand

(ii)Deficient demand.

•
OPEN MARKET OPERATION: -

•Excess demand

As we know that excess demand leads to inflation, to control the inflation Central Bank sell the government security and bonds to the Commercial bank, due to this operation the power of Commercial banks to giving loan will reduce and it helps to control inflation.

•

•Deficient demand.

•

As we know that deficit demand leads to deflation, to control the deflation, Central Bank purchase the government security and bonds from Commercial bank, due to this operation the power of Commercial banks to giving loan will increase and it helps to control deflation

•

•CASH RESERVE RATIO

•CRR is another important quantitative instrument to correct Inflation and deflation in the economy.

•CRR refers to minimum percentage of a banks total deposits which a bank to keep with Central Bank. It was decided by Central Bank of a country.

•Suppose a bank total deposit is Rs. 200 crops and rate of CRR is 10% of total deposit that Rs.20 cores a Commercial bank keep with Central Bank.

•MARGIN REQUIREMENT RATE : -

• MRR is the difference between the current value of physical security offered for loans and the value of loans granted.

When want to expand credit against a particular commodity , Central bank reduces PRR ratio which get more loans against their commodity.

Increase in MRR % reduces the loan and reduces MRR % , increase the loan.

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Thursday, April 30, 2020

MEASUREMENT OF NY BY EXPENDITURE METHOD

MEASUREMENT OF NY BY EXPENDITURE METHOD

Date: 01.05.2020

Expenditure method is that in which measured over all expenditure of a Nation at market price during an accounting year.

Final expenditure consists of expenditure on final consumption expenditure by Household and general government and investment expenditure by producing sector. Total expenditure by the economy equal to the Gross domestic product at Market Price.

Different steps involves to calculate NY by Expenditure method: -

A. IDENTIFICATION AND CLASSIFICATION OF ECONOMICS UNITS INCURRING FINAL EXPENDITURE: -

1. Household sector,

2., Government sector

3. Producing sector,

4. Rest of the world sector

B. CLASSIFICATION OF FINAL EXPENDITURE: -

1.Final expenditure includes Private final consumption expenditure done by the household and Non- profit institutes serving household on durable goods, semi durable goods and non durable goods.

2. Final consumption expenditure by government: --

1. Compensation of employee paid by govt.

2. Goods and services purchase by govt.

3. Govt. purchase from rest of the world.

C. Gross Domestic capital formation: -

(i) Expenditure on construction

(ii) Final expenditure on machines and Equipment.

For making Gross domestic capital formation, includes: -

(a) Expenditure on change in stock

(b) Expenditure on acquisition of valuables.

3. NET EXPORT- It the different export of goods and service s and import of goods and services.

IV . Estimation of net factors income from abroad.

V. Estimation of Gross Domestic product at MP: -

PFCE + GFCE + GDCF + NET EXPORT + NFIA

FROM GDP at MP - DEPRICIATION - NIT

= NDPat FC

NNP at FC = NDP at FC + NFIA = NNP at FC

PRECAUTIONS: -

1.Expenditure of second hand goods should not included.

2. Expenditure on intermediates goods and services should not included.

3. Expenditure on shares and bonds should not included.

4. Value of depreciation should not be included.

4. From GDP at MP deduct NIT.

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Home Work:-
Explain the different steps invokes in calculation of NY by Value added methods, Income and Expenditure method , Explain them briefly.

Wednesday, April 29, 2020

NUMERICAL OF VALUE ADDED

DATE: 30.04.2020
HOME WORK FOR ALL READERS PLEASE :

1. CALCULATE GROSS VALUE ADDED AT FACTOR COST: -

SR. NO.	PARTICULAR	RS. IN LAKHS
1	SALE	70
2	INTERMEDIATE CONSUMPTION	40
3	OPENING STOCK	15
4	CLOSING STOCK	10
5	SUBSIDIES	5
6.	PURCHASE OF MATERIALS	25
7	DEPRICIATION	15
8	WAGES AND SALERIES	10

2. Calculate Value added at factor cost from the following :-

Sr.No.	PARTICULARS	RS. IN LAKHS
1	Purchase of Raw material	30
2	Depreciation	12
3	Sales	200
4	Excise Tax	20
5	Opening stock	15
6	Intermediate consumption	48
VII	Closing stock	10

3. Calculate Gross Value at FC from the following data:-

2. Calculate Gross Value added at factor cost from the following :-

Sr.No.	PARTICULARS	RS. IN LAKHS
1	Net indirect taxes	20
2	Purchase of intermediate product	120
3	Purchase of machines	300
4	Sale	250
5	Consumption of fixed capital	20
6	Change in stock	30

2. Calculate Net Value added at Market Price from the following :-

Sr.No.	PARTICULARS	RS. IN LAKHS
1	Depreciation	5
2	Sales	100
3	Opening stock	20
4	Intermediates consumption	70
5	Excise duty	10
6	Change in stock	(-) 10

Calculation will be discuss tomorrow.