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 |