Economics - XII Syllabus

Part A: Microeconomics

UNIT 1: ELASTICITY AND ITS MEASUREMENT (10 TH)

  • Review of demand and supply curves
  • Concept of elasticity of demand and its types: Price, income and cross elasticity of demand Degrees of price elasticity of demand
  • Determining factors of price elasticity of demands
  • Measurement of price elasticity: Total outlay method and point method (linear case only)
  • Elasticity of supply

UNIT 2: THEORY OF CONSUMER BEHAVIOUR (13 TH)

  • Concept of cardinal utility: Total utility and marginal utility
  • Law of diminishing marginal utility
  • Law of substitution
  • Consumer’s surplus: Concept and importance

UNIT 3: THEORY OF PRODUCTION (10 TH)

  • Concept of production function (short and long run)
  • Total, average and marginal products and their derivation
  • Law of variable proportions
  • Returns to scale

UNIT 4: MARKET, REVENUE AND COST CURVES (15 TH)

  • Concepts of market: Perfect competition, monopoly and imperfect competition
  • Concepts of total, average and marginal revenue
  • Derivation of average revenue and marginal revenue from total revenue curve under perfect competition and monopoly
  • Fixed cost, variable cost, and total cost; average and marginal costs
  • Concepts of short run and long run costs
  • Derivation of short run cost curves

UNIT 5: THEORY OF PRICE AND OUTPUT DETERMINATION (12 TH)

  • Equilibrium of firm: TR=TC and MR=MC approaches
  • Meaning, features and price and output determination under
  • perfect competition (firm and industry)
  • Meaning, features & price & output determination under monopoly

UNIT 6: FACTOR PRICING (15 TH)

  • Rent: Concept of economic rent and contract rent; Ricardian theory of rent
  • Wage: Money wage and real wage; subsistence wage theory; wage fund theory
  • Interest: Gross and net interests; classical theory of interest
  • Profit: Gross and net profits; risk and uncertainty bearing theories of profit

Part B: Macroeconomics

UNIT 7: BASIC CONCEPT (6 TH)

  • Meaning of microeconomics, closed and open economy, and macro-economic variables

UNIT 8: NATIONAL INCOME ACCOUNTING (10 TH)

  • Gross Domestic Product (GDP), Gross National Product (GNP), National Income (NI), Net National Product (NNP), Personal Income (PI), Disposable Income (DI), and Per Capita Income
  • Nominal and real GDP: Difference and calculations; GDP deflator
  • Circular flow of income
  • Measurement of national income: Product, income and expenditure methods
  • Difficulties in measuring national income

UNIT 9: MONEY (10 TH)

  • Meaning, importance, functions and forms of money
  • Value of money
  • Quantity theory of money (Fisher’s equation)
  • Inflation and deflation: Meaning, causes and consequence

UNIT 10: BANKING (11 TH)

  • Role of banking system economy
  • Classification of banks: Central bank, commercial be development banks
  • Functions of central bank with special reference Rastra Bank
  • Functions of commercial banks with reference to commercial banks in Nepal
  • Concepts of money market and capital market

UNIT 11: GOVERNMENT FINANCE (20 TH)

  • Concept and importance of government finance
  • Government expenditure: Importance and classification (with references of Nepal)
  • Government of revenue: Tax and non-tax sources, concept of direct and indirect taxes; concepts of progressive proportional, and regressive taxes, characteristics of a tax system; its sources in Nepal
  • Government borrowing: Concepts of internal borrowing
  • Government Budget: Meaning and steps in budget formulation

UNIT 12: INTERNATIONAL TRADE (18 TH)

  • Concept and importance of international trade
  • Balance of trade: Surplus, deficit and balance
  • Concept and importance balance to payment
  • Free trade and protectionism: Advantages and disadvantages
  • Nepal’s foreign trade: Growth, composition, and direction: its problems
  • Ricardian comparative cost theory of international trade
  • General introduction to WTO and SAFTA

 

SCHEME OF EVALUATION

Q. No.

Nature of Questions

Marks

 

Part A: Microeconomics

50

1 – 3

Group A1: Three long answer type questions will be asked and the students will have to answer any two questions

2 x 10 = 20

4 – 8

Group A2: Five short answer type questions will be asked and the students will have to answer only four questions

4 x 5 = 20

9 – 13

Group A3: Five very short answer type questions will be asked and the students will have to answer all questions

5 x 2 = 10

 

Part B: Macroeconomics

50

14 – 16

Group B1: Three long answer type questions will be asked and the students will have to answer any two questions

2 x 10 = 20

17 – 21

Group B2: Five short answer type questions will be asked and the students will have to answer only four questions

4 x 5 = 20

22 – 26

Group B3: Five very short answer type questions will be asked and the students will have to answer all questions

5 x 2 = 10

 

Total Marks

100