Latest Class 12 Economics Syllabus 2025-26 – Chapter Wise

Unit

Chapter

Topic/Subtopic

1

Introduction

1.1 A Simple Economy

1.2 Central Problems of an Economy

1.3 Organisation of Economic Activities  

1.3.1 The Centrally Planned Economy  

1.3.2 The Market Economy

1.4 Positive and Normative Economics

1.5 Microeconomics and Macroeconomics

1.6 Plan of the Book

2

Theory of Consumer Behaviour

2.1 Utility  

2.1.1 Cardinal Utility Analysis  

2.1.2 Ordinal Utility Analysis

2.2 The Consumer's Budget  

2.2.1 Budget Set and Budget Line  

2.2.2 Changes in the Budget Set

2.3 Optimal Choice of the Consumer

3

Demand

3.1 Demand Curve and the Law of Demand

3.2 Deriving a Demand Curve from Indifference Curves and Budget Constraints

3.3 Normal and Inferior Goods

3.4 Substitutes and Complements

3.5 Shifts in the Demand Curve

3.6 Movements along the Demand Curve and Shifts in the Demand Curve

3.7 Market Demand

4

Elasticity of Demand

4.1 Elasticity along a Linear Demand Curve

4.2 Factors Determining Price Elasticity of Demand for a Good

4.3 Elasticity and Expenditure

5

Production and Costs

5.1 Production Function

5.2 The Short Run and the Long Run

5.3 Total Product, Average Product and Marginal Product

5.4 Costs  Short Run Costs  Long Run Costs

6

Theory of the Firm Under Perfect Competition

6.1 Perfect Competition: Defining Features

6.2 Revenue

6.3 Profit Maximisation

6.4 Supply Curve of a Firm  Short Run Supply Curve of a Firm  Long Run Supply Curve of a Firm  The Short Run Shut Down Point  The Normal Profit and Break-even Point

6.5 Determinants of a Firm’s Supply Curve  Technological Progress  Input Prices  Market Supply Curve6.6 Price Elasticity of Supply

7

Market Equilibrium

7.1 Equilibrium, Excess Demand, Excess Supply

7.2 Market Equilibrium: Fixed Number of Firms

7.3 Market Equilibrium: Free Entry and Exit

7.4 Applications: Price Ceiling, Price Floor

Unit

Chapter

Topic/Subtopic

1

Introduction

1.1 Emergence of Macroeconomics

1.2 Context of the Present Book of Macroeconomics

2

National Income Accounting

2.1 Some Basic Concepts of Macroeconomics

2.2 Circular Flow of Income and Methods of Calculating National Income  

2.2.1 The Product or Value Added Method  

2.2.2 Expenditure Method  

2.2.3 Income Method

2.4 Factor Cost, Basic Prices and Market Prices

2.5 Some Macroeconomic Identities

2.6 Nominal and Real GDP

2.7 GDP and Welfare

3

Money and Banking

3.1 Functions of Money

3.2 Demand for Money and Supply of Money  

3.2.1 Demand for Money  

3.2.2 Supply of Money

3.3 Money Creation by Banking System  

3.3.1 Basic Story of a Fictional Bank 

3.3.2 Limits to Credit Creation and Money Multiplier

3.4 Policy/Tools to Control Money Supply

4

Determination of Income and Employment

4.1 Aggregate Demand and its Components  

4.1.1 Consumption  

4.1.2 Investment

4.2 Determination of Income in Two-sector Model

4.3 Determination of Equilibrium Income in the Short Run  

4.3.1 Macroeconomic equilibrium with price level fixed  

4.3.2 Effect of an autonomous change in aggregate demand on income and output

4.4 The Multiplier Mechanism

4.5 Some More Concepts

5

Government Budget and the Economy

5.1 Government Budget – Meaning and Its Components 
5.1.1 Objectives of Government Budget 
5.1.2 Classification of Receipts 
5.1.3 Classification of Expenditure
5.2 Balanced, Surplus and Deficit Budget
5.2.1 Measures of Government Deficit

6

Open Economy Macroeconomics

6.1 The Balance of Payments 
6.1.1 Current Account 
6.1.2 Capital Account 
6.1.3 Balance of Payments Surplus and Deficit
6.2 The Foreign Exchange Market 
6.2.1 Foreign Exchange Rate 
6.2.2 Determination of the Exchange Rate 
6.2.3 Merits and Demerits of Flexible and Fixed Exchange Rate Systems 
6.2.4 Managed Floating

S.No

Topic Pages CBSE Class 12 Economics

1

Class 12 Economics - National Income

2

Class 12 Economics - Globalisation and the Indian Economy

3

Class 12 Economics - Equilibrium Price

4

Class 12 Economics - Market Equilibrium

S.No

Study Materials For CBSE Class 12

1

CBSE Class 12 NCERT Solutions

2

CBSE Class 12 Important Questions

3

CBSE Class 12 NCERT Exemplar Solutions

4

CBSE Class 12 Sample Papers

5

CBSE Class 12 Previous Year Question Papers