Class 12 Economics: The Ultimate Syllabus Guide

Part A: BASIC CONCEPTS OF ECONOMICS AND ALLOCATION OF RESOURCES

Unit 1: Basic Concept of Economics and Allocation of Resources

• 1. Basic Concept: Scarcity and Choice; Opportunity Cost; Production Possibility Curve (PPC); Allocation of Resources; Division of Labor and Specialization; Economic Systems (Types and Features).

Part B: MICROECONOMICS

Unit 2: Microeconomics

• 2. Market and Revenue Curves: Concept of Market (Perfect, Imperfect – Oligopoly, Monopoly, Monopolistic); TR, AR, MR concepts and derivation under Perfect Competition and Monopoly.
• 3. Cost Curves: Explicit, Implicit, Fixed, Variable, Total, Average, Marginal Costs; Short-run costs and curves.
• 4. Theory of Price and Output Determination: Equilibrium Price and Output of Firm/Industry in Short-run and Long-run (Perfect Competition); Monopoly Market Equilibrium.
• 5. Price Determination of Factors of Production: Factors pricing; Rent (Ricardian); Wage (Money/Real, Subsistence, Wage Fund); Interest (Classical); Profit (Risk bearing, Uncertainty bearing).

Part C: MACROECONOMICS

Unit 3: Macroeconomics

• 6. Banking System and Monetary Policy: Role of banking; Classification of banks; Functions of Central and Commercial banks (Nepal context); Capital and Money market; Monetary policy types; Province-wise bank distribution.
• 7. Government Finance: Importance; Classification of expenditure; Direct/Indirect taxes; Progressive/Proportional/Regressive taxation; Good tax system; Revenue sources; Borrowing (Internal/External); Government Budget phases.
• 8. International Trade: Balance of Trade vs Payment; Deficit correction measures; Exchange rate types; Free vs Protection trade; Comparative cost theory.

Part D: DEVELOPMENT ECONOMICS

Unit 4: Development Economics

• 9. Poverty, Inequality, Unemployment and Human Resource: Concepts and causes; Measures to reduce poverty/inequality; Types of unemployment; Human resource role; HDI; Nepal’s population status.

Part E: NEPALESE ECONOMY

Unit 5: Nepalese Economy

• 10. Foreign Trade and Foreign Employment of Nepal: Growth, Composition, Direction, Problems; WTO and SAFTA; Foreign Employment and Remittance.
• 11. Development Planning in Nepal: Concept; Current Plan (Objectives, Policies); Evaluation of Previous Plan; Formulation Process.
• 12. Sustainable Development Goals and Nepal: The 17 Goals; Zero poverty; Zero hunger; Decent work/growth; Quality education in Nepal context.

Part F: QUANTITATIVE TECHNIQUES FOR ECONOMICS

Unit 6: Quantitative Techniques for Economics

• 13. Review of Basic Subject Matter of Statistics: Definition, scope, importance, limitations.
• 14. Data Collection: Primary data methods; Secondary data sources.
• 15. Measures of Dispersion: Deviations, coefficient of variation, characteristics of variance.
• 16. Index Number: Price index number, Laspeyre’s and Paasche’s index numbers.

Unit 1: Basic Concept of Economics and Allocation of Resources

• 1.1 Scarcity and Choice.
• 1.2 Concept of Opportunity Cost.
• 1.3 Production Possibility Curve (PPC): Concept, Shape, and Shift.
• 1.4 Concept of Allocation of Resources.
• 1.5 Division of Labor and Specialization: Advantages and Disadvantages.
• 1.6 Economic system: Types and Features.

Unit 2: Microeconomics

2. Market and Revenue Curves

• 2.1.1 Concept of Market: Perfect Competition, Imperfect Competition (Oligopoly, Monopoly, Monopolistic).
• 2.1.2 Concept of Total Revenue, Average Revenue, and Marginal Revenue.
• 2.1.3 Derivation of AR and MR Curves From TR Curve Under Perfect Competition and Monopoly.
• 2.1.4 Simple Numerical Illustrations.

3. Cost Curves

• 2.2.1 Concept of Explicit, Implicit, Fixed, Variable, Total, Average, and Marginal Costs.
• 2.2.2 Short-run Costs and Derivation of Short-run Cost Curves.
• 2.2.3 Simple Numerical Illustration.

4. Theory of Price and Output Determination

• 2.3.1 Perfect Competition: Definition, characteristics, Equilibrium Price and Output (Short/Long-run).
• 2.3.2 Monopoly Market: Definition, Characteristics, Equilibrium Price and Output.
• 2.3.3 Simple Numerical Illustration.

5. Factors Pricing

• 2.4.1 Concept of factors pricing.
• 2.4.2 Rent: Concept of economic rent and Ricardian Theory of Rent.
• 2.4.3 Wage: Money/Real wage, Subsistence Theory, Contract rent, Wage Fund Theory.
• 2.4.4 Interest: Gross/Net interest, Classical Theory of Interest.
• 2.4.5 Profit: Gross/Net profit, Risk bearing Theory, Uncertainty bearing Theory.

Unit 3: Macroeconomics

6. Banking System and Monetary Policy

• 3.1.1 Role of banking system in the economy.
• 3.1.2 Classification of banks (Central, Commercial, Development, Financial, Microfinance).
• 3.1.3 Functions of central bank in the context of Nepal.
• 3.1.4 Functions of commercial banks in the context of Nepal.
• 3.1.5 Concept of capital and money market.
• 3.1.6 Monetary policy: Meaning and types.
• 3.1.7 Province-wise distribution of commercial and development banks in Nepal.

7. Government Finance

• 3.2.1 Concept and importance of government finance.
• 3.2.2 Classification of government expenditure in the context of Nepal.
• 3.2.3 Concept of direct/indirect taxes, progressive, proportional, and regressive taxation.
• 3.2.4 Qualities of good tax system.
• 3.2.5 Government revenue: Tax and non-tax revenue (Nepalese context).
• 3.2.6 Government borrowing: Concept of internal and external borrowing.
• 3.2.7 Government Budget: Meaning and phases of budget formulation (Nepalese context).

8. International Trade

• 3.3.1 Concept and importance of international trade.
• 3.3.2 Concept of balance of trade and balance of payment.
• 3.3.3 Measures to correct deficit balance of trade in the context of Nepal.
• 3.3.4 Exchange rate: Concept and types.
• 3.3.5 Free trade and protection trade: Merits and demerits.
• 3.3.6 Comparative cost theory of international trade.

Unit 4: Development Economics

• 4.1 Concept of Poverty, Inequality, and Unemployment.
• 4.2 Causes of poverty and inequality and measures to reduce them.
• 4.3 Types and causes of unemployment, and measures to create employment.
• 4.4 Concept and role of human resource.
• 4.5 Concept of human development indicators and human development index.
• 4.6 Current status of Nepal’s population (Size, composition, distribution, and growth).

Unit 5: Nepalese Economy

10. Nepal’s Foreign Trade and Foreign Employment

• 5.1.1 Concept of Nepal’s Foreign Trade.
• 5.1.2 Growth, Composition, Direction, and Problems of Nepalese Foreign Trade.
• 5.1.3 Concept of WTO and SAFTA.
• 5.1.4 Foreign Employment and Remittance: Current Status, Merits, and Demerits.

11. Development Plan in Nepal

• 5.2.1 Concept of Development Planning.
• 5.2.2 Objectives, Priorities, and Policies of Current Plan.
• 5.2.3 General Evaluation of Previous Plan.
• 5.2.4 Plan Formulation Process in Nepal.

12. Sustainable Development Goals and Nepal

• 5.3.1 Concept of sustainable development goals of United Nations: 17 Development Goals.
• 5.3.2 Zero poverty and Nepal.
• 5.3.3 Zero hunger and Nepal.
• 5.3.4 Decent work, economic growth, and Nepal.
• 5.3.5 Quality education and Nepal.

Unit 6: Quantitative Techniques for Economics

• 6.1 Review of basic concept of statistics: Definition, scope, importance, and limitations.
• 6.2 Data collection: Methods of primary data collection and sources of secondary data.
• 6.3 Deviations, coefficient of variation, and characteristics of variance.
• 6.4 Index number: Price index number, Laspeyre’s and Paasche’s index numbers.