Class 12 Economics Syllabus

Unit 1: Microeconomics

• 1.1 Theory of Cost and Revenue
  • Concept of cost: Opportunity, Economic, Accounting, Explicit, Implicit.
  • Short-run Total, Average, and Marginal Cost.
  • Short-run cost curve.
  • Total, Average, and Marginal Revenue under Perfect Competition and Monopoly.
• 1.2 Market
  • Concept and types of markets.
  • Features of Perfect Competition and Monopoly.
  • Price and output determination under Perfect Competition and Monopoly (short run & long run).
  • Features of Monopolistic Competition and Oligopoly.
• 1.3 Factor Pricing
  • Concepts of rent, wages, interest, profit.
  • Modern Theory of Rent.
  • Marginal Productivity Theory of Wages.
  • Loanable Funds Theory of Interest.
  • Dynamic Theory of Profit.

Unit 2: Macroeconomics

• 2.1 Concept of Macroeconomics
  • Objectives and importance of macroeconomics.
• 2.2 Income and Employment
  • Say’s Law of Markets.
  • Principle of effective demand.
  • Consumption, saving, and investment functions.
  • Equilibrium income in a two-sector economy.
  • Investment multiplier.
• 2.3 Financial Market and Monetary Policy
  • Functions of central and commercial banks.
  • Monetary policy: Objectives and instruments.
  • Role of financial institutions in Nepal.
• 2.4 Government Finance and Fiscal Policy
  • Concept and importance of government finance.
  • Sources of government revenue.
  • Heads of government expenditure.
  • Government budget and its types.
  • Fiscal policy: Objectives and instruments.
• 2.5 International Trade
  • Concept and importance.
  • International vs. inter-regional trade.
  • Theory of comparative cost advantage.
  • Balance of payments.
  • Exchange rate determination.

Unit 3: Development Economics

• 3.1 Economic Development
  • Sources of development.
  • Role of government and private sector.
• 3.2 Foreign Aid and International Cooperation
  • Meaning and types of foreign aid.
  • Importance and need in Nepal.
  • Role of IMF and World Bank.
  • Introduction to WTO.

Unit 4: Economy of Nepal

• 4.1 Economic Planning and Current Plan
  • Meaning, objectives, background.
  • Major features of the current plan.
• 4.2 Foreign Trade of Nepal
  • Direction and composition of Nepal’s trade.
  • Role of EXIM Code.
  • Trade and Export Promotion Centre.
• 4.3 Poverty, Inequality, and Unemployment
  • Concepts and types.
  • Causes and remedies.
  • Foreign employment and remittances.

Unit 5: Quantitative Methods in Economics

• 5.1 Basic Statistics
  • Use of statistics in economics.
  • Frequency distribution.
  • Diagrams and graphs.
  • Measures of central tendency: Mean, Median, Mode.
  • Measures of dispersion: Range, Quartile Deviation, Standard Deviation.