Economics Commerce (English Medium) Class 12 CBSE Syllabus 2026-27

• Introduction
• Flow of Production
• Final Goods
• Types of Final Goods
• Consumer Durables
• Intermediate Goods
• Stocks and Flows
• Investment and Depreciation
• Consumption vs Investment
• Circular Flow of Income

• Phases of Circular Flow
• Sectors Involved in Circular Flow
• Types of Circular Flow of Income

• Definition
• Constituents of Private Income

• Primary Functions
• Secondary Functions
• Contingent Functions
• Real-Life Application
• Key Point Summary

• Demand for Money
• Supply of Money

• Meaning
• Objectives

• Formula for aggregate demand
• Core Idea
• Planned vs Actual Demand
• Components Table
• Simple Closed Economy
• Key Points: Aggregate Demand and Its Components

• Introduction
• Explanation 
• Diagrammatic Representation

• Introduction
• Meaning

• Allocation Function of Government Budget
• Redistribution Function of Government Budget
• Stabilisation Function of Government Budget

• Revenue Budget
• Capital Budget

• Revenue Receipts
• Capital Receipts
• Components of Budgetary Receipts

• Revenue expenditure 
• Capital expenditure

1. Revenue Deficit
2. Fiscal Deficit
3. Primary Deficit

• Introduction
• Meaning
• Definition: Fiscal Policy
• Formulas
• Changes in Government Expenditure

• Explanation
• Example 5.1
• Example 5.2
• Example 5.3

• Meaning of an Open Economy
• Ways Economies Are Connected
• Need for Foreign Exchange
• Introduction to Exchange Rate

• Definition: Balance of Payments
• Introduction

• Demand for Foreign Exchange
• Supply of Foreign Exchange

• Flexible Exchange Rate
• Speculation
• Interest Rates and the Exchange Rate
• Income and the Exchange Rate
• Exchange Rates in the Long Run
• Fixed Exchange Rates

• Meaning and Types of Infrastructure
• Conclusion

• Introduction
• Core Goals of Five-Year Plans
• Plan-wise Overview (1951-2017)
• Real-Life Application
• Key Point Summary

• Agricultural Seasons
• Agricultural Work
• Traditional Agriculture
• Land Reforms and Structural Changes in Agriculture
• Green Revolution and Agricultural Self-Sufficiency
• Subsidies and Support for Farmers
• Employment Trends and Sectoral Imbalance

• Public and Private Sectors in Indian Industrial Development
• Industrial Policy Resolution 1956 (IPR 1956)
• Small-Scale Industry (SSI)

• Effect of Policies on Industrial Development
• Conclusion

• Foreign Direct Investment (FDI)
• Foreign Institutional Investment (FII),
• Growth and Employment
• Reforms in Agriculture
• Reforms in Industry
• Disinvestment
• Reforms and Fiscal Policies
• Conclusion

• Introduction
• Meaning

• Growth in Government Expenditure on Education
• Educational Achievements in India

• Education for All - Still a Distant Dream
• Gender Equity - Better than Before
• Higher Education - a Few Takers
• Conclusion

• Introduction
• Meaning
• Challenges for Rural Development
• Importance: Flowchart 
• Real-Life Application
• Key Point Summary

• Credit
• Rural Banking - a Critical Appraisal

• Emerging Alternate Marketing Channels
• Government Initiatives and Challenges in Agricultural Marketing

• Animal Husbandry
• Fisheries
• Horticulture
• Other Alternate Livelihood Options

• Benefits of Organic Farming
• Conclusion

• Introduction
• Trends in Employment Pattern (Sector-wise and Status-wise)

• Introduction
• Causes of Unemployment in India
• Impacts
• Real-Life Application
• Key Point Summary

• Conclusion

• Introduction
• Definition
• Functions

• Chipko or Appiko — What’s in a Name?
• Major Causes of Land Degradation
• Urban Air Pollution and Industrial Impact
• The Need for Sustainable Development

• Strategies 
• Conclusion

• China
• Pakistan

• Introduction
• Tabular Representation

• Annual Growth of Gross Domestic Product, 1980–2017
• Sectoral Share of Employment and GDP (%) in 2021
• Trends in Output Growth in Different Sectors, 1980–2015

• Other Human Development Indicators

• Conclusion

• What is produced and in what quantities?
• How are these goods produced?
• For whom are these goods produced?

• Introduction
• Example

• The Centrally Planned Economy
• The Market Economy

• Introduction
• Definition: Utility
• Features
• Types: Flowchart
• Real-Life Application
• Key Point Summary

• Introduction
• Key Concepts 
• Consumer Equilibrium
• Real-Life Application
• Key Point Summary

• Introduction: Ordinal Utility
• Definition: Indifference Curve Analysis
• Origin
• Indifference Schedule
• Indifference Curve
• Indifference Map
• Marginal Rate of Substitution (MRS)
• Assumptions
• Real-Life Application
• Key Point Summary

• Meaning of Production Function
• Algebraic form of production function
• Important Points
• Short-run and Long-run (time concepts)
• Types of Production Functions
• Table: Short run vs Long run
• Table: Returns to a factor vs Returns to scale
• Economist's Corner: Tjalling Koopmans
• Key Points: Production Function

• Introduction
• Concept of Production
• Scientific Definitions: Production
• Real-Life Application
• Key Points: Basics of Production Theory

• Introduction
• Key Concepts
• Table Showing Production
• Real-Life Application
• Key Points: Variation of Output in the Short-Run Returns to a Factor

• Meaning
• Definition: Law of Variable Proportions
• Statement of the Law of Variable Proportions
• Assumptions
• Important Terms
• Table: Example (Applied to Agriculture)
• Stages of the Law
• Real-Life Application
• Key Points: Law of Variable Proportions

• Returns to a Factor
• Definitions: Law of Returns to Scale
• Returns to Scale
• Table: Stages of Returns to Scale
• Types of Returns to Scale
• Returns to a Factor vs Returns to Scale
• Law of Variable Proportions

• Concept and Importance
• Types of Cost Functions
• Fixed vs. Variable Costs
• Real-Life Application
• Key Points: Behaviour of Cost in the Short - Run

• Meaning of a producer
• Meaning of producer's equilibrium
• Conditions of producer's equilibrium
• Producer's equilibrium
• Key Points: Producer's Equilibrium

• Introduction
• Definition: Law of Supply
• Main Points
• Supply Schedule
• Statement of the Law of Supply
• Supply Curve
• Assumptions 
• Exceptions 
• Real-Life Application
• Key Points: Law of Supply

• Introduction
• Main Determinants of Supply
• Supply Function
• Determinants of Elasticity of Supply
• Importance of Elasticity of Supply
• Real-Life Application
• Key Point Summary

• Supply Curve
• Movement Along Supply Curve
• Shift of the Supply Curve
• Factors Causing Shift in Supply Curve
• Table: Expansion vs Increase in Supply
• Table: Contraction of Supply vs. Decrease in Supply
• Reasons Behind the Shift in Supply Curve
• Real-Life Application
• Key Point Summary

• Introduction
• Percentage Method
• Problem 1
• Problem 2
• Problem 3
• Problem 4
• Problem 5
• Problem 6
• Problem 7
• Problem 8
• Geometric Method
• Time Period and Elasticity
• Real-Life Application

• Flowchart

• Meaning of Marginal Cost
• Marginal Cost Formula
• Example
• Table
• Key Characteristics and Relationships
• Real-Life Application
• Key Points: Cost Concepts > Marginal Cost

Shapes of Total Product, Marginal Product and Average Product Curves

• Introduction
• Definition: Long Run
• Definition: Long Run Total Cost
• Long Run Total Cost
• Definition: Long Run Average Cost
• Long Run Average Cost
• Names for LAC
• Relationship: LAC and SAC
• Definition: Long Run Marginal Cost
• Long Run Marginal Cost
• Relation Between LMC and LAC
• Key Points: Costs in Long Run Period

• Introduction
• Definition: Market
• Essential Market Conditions
• Types of definition of market
• Features of a market
• Real-Life Application
• Key Points: Concept of Market

• Effects of Demand Shifts (Supply Constant)
• Effects of Supply Shifts (Demand Constant)
• Combined Effects
• Stepwise Clarity
• Real-Life Application
• Key Points: Effect of Simultaneous change in Demand and Supply on Equilibrium Price

• Introduction
• Definition: Imperfect Competition
• Economist's contribution
• Conditions leading to imperfect competition
• Real-Life Application
• Key Points: Imperfect Competition

• Broad classification of market structure
• Main market forms
• Key Points: Classification of Market Structure

• Price Control
• Price Ceiling (Maximum Price)
• Price Floor (Minimum Price)
• Implications of Price Ceiling Policy
• Effects of Minimum Price (Price Floor)
• Key Points: Applications of Tools of Demand and Supply Price Control

• Maximum and Minimum

• Meaning of Revenue
• Total Revenue (TR) 
• Average Revenue (AR) 
• Marginal Revenue (MR)
• Behaviour under different market structures

• Introduction: Profit-maximisation objective
• Definition of Profit
• Normal profit and pure (economic) profit
• Role of profit in resource allocation
• Equilibrium of the firm and profit maximisation rules
• Economist note: Maurice Allais
• Real-Life Application
• Key Points: Profit Maximisation Objective

Determinants of a Firm’s Supply Curve

• Technological Progress
• Input Prices

• Price Elasticity of Supply
• Definition: Elasticity of Supply
• Meaning of Elasticity of Supply
• Formula: Elasticity of Supply
• Types of Supply Elasticity
• Distinction Between Contraction of Supply and Decrease in Supply
• Real-Life Application
• Key Point Summary

Simple Monopoly in the Commodity Market

• Market Demand Curve is the Average Revenue Curve
• Total, Average and Marginal Revenues
• Marginal Revenue and Price Elasticity of Demand
• Short Run Equilibrium of the Monopoly Firm

Other Non-perfectly Competitive Markets

• Monopolistic Competition
• How do Firms behave in Oligopoly?