Maharashtra HSC Economics Syllabus 2023-24 - Check Maharashtra Class 12 Economics Syllabus

National Income and Related Aggregates

• What is Macroeconomics?
• Basic concepts in macroeconomics: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation

• Circular flow of income (two-sector model)
• Methods of Calculating National Income - Value Added or Product method, Expenditure method, Income method

• Aggregates related to National Income: Gross National Product (GNP), Net National Product (NNP), Gross Domestic Product (GDP) and Net Domestic Product (NDP) - at market price, at factor cost; Real and Nominal GDP

• GDP and Welfare

Money and Banking

• Money – meaning and functions, supply of money - Currency held by the public and net demand deposits held by commercial banks

• Money creation by the commercial banking system.
• The central bank and its functions (example of the Reserve Bank of India): Bank of Issue,
• Govt. Bank, Banker's Bank, Control of Credit through Bank Rate, CRR, SLR, Repo
• Rate and Reverse Repo Rate, Open Market Operations, Margin requirement.

Determination of Income and Employment

• Aggregate demand and its components.
• Propensity to consume and propensity to save (average and marginal).
• Short-run equilibrium output; investment multiplier and its mechanism.
• Meaning of full employment and involuntary unemployment.
• Problems of excess demand and deficient demand; measures to correct them - changes in government spending, taxes and money supply.

Government Budget and the Economy

• Government budget - meaning, objectives and components.
• Classification of receipts - revenue receipts and capital receipts;
• Classification of expenditure – revenue expenditure and capital expenditure.
• Balanced, Surplus and Deficit Budget – measures of government deficit.

Balance of Payments

• Balance of payments account - meaning and components;
• Balance of payments – Surplus and Deficit
• Foreign exchange rate - meaning fixed and flexible rates and managed floating.
• Determination of exchange rate in a free market, Merits and demerits of the flexible and fixed exchange rate.
• Managed Floating exchange rate system

Current Challenges facing the Indian Economy

• Human Capital Formation: How people become resource; Role of human capital in economic development; Growth of Education Sector in India
• Rural development: Key issues - credit and marketing - the role of cooperatives; agricultural diversification; alternative farming - organic farming
• Employment: Growth and changes in the workforce participation rate in formal and informal sectors; problems and policies
• Sustainable Economic Development: Meaning, Effects of Economic Development on Resources and Environment, including global warming

Development Experience of India

• A comparison with neighbours: India and Pakistan, India and China
• Issues: economic growth, population, sectoral development and other Human Development Indicators