MP Board Class 12 Economics Syllabus 2025-26

Unit-Wise Breakdown of MP Board Class 12 Economics Syllabus 2025-26

The syllabus is systematically divided into two parts Introductory Microeconomics and Introductory Macroeconomics each covering fundamental theories and real-world applications.

Part A Introductory Microeconomics

This section focuses on consumer choices, production theories, cost analysis, and different market forms, providing a foundation for understanding how businesses and consumers interact.

Unit 1 Introduction

• Basic economy and central problems of an economy
• Economic activities and organization of production
• Types of economies (centrally planned economy, market economy)
• Positive and normative economics
• Individual and aggregate economics

Unit 2 Consumer Behavior Theory

• Utility analysis (cardinal and ordinal)
• Law of diminishing marginal utility
• Indifference curve and budget line
• Consumer equilibrium
• Price effect, income effect, substitution effect
• Demand – meaning, determinants, demand curve
• Elasticity of demand (price, income, cross elasticity)
• Market demand and law of demand

Unit 3 Production and Costs

• Production function
• Total, average, and marginal product
• Law of variable proportions
• Returns to scale
• Cost concepts (total, average, marginal cost)
• Short-run and long-run cost curves
• Revenue (total, average, marginal revenue)

Unit 4 Forms of Market and Price Determination

• Perfect competition – features and equilibrium
• Monopoly, monopolistic competition, oligopoly (basic concepts)
• Price determination under perfect competition
• Effects of shifts in demand and supply
• Simple applications

Unit 5 Market Equilibrium

• Equilibrium, excess demand, excess supply
• Equilibrium price and quantity
• Consumer and producer surplus
• Shifts in demand and supply curves

Part B Introductory Macroeconomics

This section covers macroeconomic indicators, fiscal policies, monetary systems, and international trade, helping students grasp how economies function at a national and global level.

Unit 1 Introduction to Macroeconomics

• Meaning, scope, and significance of macroeconomics

Unit 2 National Income Accounting

• Basic concepts (GDP, GNP, NDP, NNP)
• Methods of calculating national income (value added, income, expenditure)
• GDP at current and constant prices
• Real vs. nominal GDP
• Personal income, disposable income, private income

Unit 3 Money and Banking

• Meaning and functions of money
• Money supply
• Commercial banks and central bank functions

Unit 4 Determination of Income and Employment

• Aggregate demand and supply
• Consumption function and investment function
• Two-sector model of income determination
• Full employment vs. underemployment equilibrium
• Saving and investment equality
• Multiplier effect
• Impact of changes in aggregate demand and supply

Unit 5 Government Budget and the Economy

• Meaning and components of government budget (revenue and capital)
• Objectives of budget
• Types of budgets (balanced, surplus, deficit)
• Fiscal deficit, revenue deficit, primary deficit

Unit 6 Open Economy Macroeconomics

• Balance of payments (current account, capital account)
• Balance of trade
• Exchange rate systems (fixed, flexible, managed floating)
• Foreign exchange market
• Foreign trade multipliers

Why the MP Board Class 12 Economics Syllabus 2025-26 Matters

The MP Board Class 12 Economics Syllabus 2025-26 is crucial for students aiming to pursue careers in commerce, economics, or business administration. It provides a strong foundation for competitive exams like CA, CS, UPSC, and various university entrance tests.

Key benefits of the syllabus include:

• Conceptual clarity in micro and macroeconomic theories.
• Real-world applications through case studies and market analysis.
• Analytical skill development for interpreting economic policies and trends.
• Preparation for higher studies in economics, finance, and business.

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