Get the complete CBSE Class 12 Economics Syllabus 2026-27 with all parts, units, topics, marks distribution, exam pattern, and expert tips. One page. Everything you need.

Quick Overview

Exam Structure 2026-27

The theory paper carries 80 marks and Project Work carries 20 marks. Internal choice is given in some questions.

Theory Paper Pattern (80 Marks)

Project Work (20 Marks)

Part-Wise Marks Distribution 2026-27

Economics is split into Part A: Introductory Microeconomics and Part B: Introductory Macroeconomics, each carrying 40 marks.

Complete Syllabus 2026-27: All Units and Topics

Use this as your chapter-wise revision checklist throughout the year.

Part A: Introductory Microeconomics (40 Marks)

Unit 1: Introduction to Microeconomics

•        Meaning of Economics - scarcity, choice, opportunity cost

•        Central Problems - What to produce, How to produce, For whom to produce

•        Production Possibility Frontier (PPF) - concept, shape, shifts

•        Microeconomics vs Macroeconomics

Unit 2: Consumer Equilibrium and Demand

•        Utility - total and marginal utility, Law of Diminishing Marginal Utility

•        Consumer Equilibrium - Single Commodity (MU = Price) and Two Commodity case

•        Indifference Curve Analysis - budget line, consumer equilibrium (MRS = Price Ratio)

•        Demand - meaning, determinants, Law of Demand

•        Demand Curve - movements vs shifts

•        Elasticity of Demand - Price, Income, Cross Elasticity: types, measurement, determinants

Unit 3: Producer Behaviour and Supply

•        Production Function - Total Product, Average Product, Marginal Product

•        Returns to a Factor - Law of Variable Proportions: three stages

•        Returns to Scale - Increasing, Constant, Decreasing

•        Cost Concepts - Fixed Cost, Variable Cost, Total Cost, Average Cost, Marginal Cost

•        Cost Curves - shape and relationship: TC, TFC, TVC, AC, MC

•        Revenue Concepts - TR, AR, MR and their relationship

•        Producer Equilibrium - MR = MC condition, TR-TC approach

•        Supply - meaning, Law of Supply, determinants, elasticity of supply

Unit 4: Forms of Market and Price Determination

•        Market types: Perfect Competition, Monopoly, Monopolistic Competition, Oligopoly

•        Price Determination under Perfect Competition - demand and supply interaction

•        Equilibrium price and quantity - effects of shifts in demand and supply

•        Simple Applications - price ceiling, price floor

Part B: Introductory Macroeconomics (40 Marks)

Unit 5: Introduction to Macroeconomics

•        Macroeconomics - meaning and scope

•        Circular flow of income in a two-sector economy

Unit 6: National Income and Related Aggregates

•        National Income - concepts: GDP, GNP, NDP, NNP, NI, PI, DPI

•        GDP at Market Price vs GDP at Factor Cost - Net Indirect Tax adjustment

•        Methods of measuring National Income: Value Added Method, Income Method, Expenditure Method

•        Nominal GDP vs Real GDP - GDP Deflator

•        Numericals on National Income - must practice thoroughly

Unit 7: Money and Banking

•        Money - meaning, functions, types

•        Supply of Money - M1, M2, M3, M4

•        Commercial Banks - functions, credit creation process

•        Central Bank (Reserve Bank of India) - functions, role

•        Monetary Policy instruments: Repo Rate, Reverse Repo Rate, CRR, SLR, Open Market Operations

Unit 8: Determination of Income and Employment

•        Aggregate Demand (AD) - components: C + I + G + NX

•        Aggregate Supply (AS) - meaning and components

•        Consumption Function: APC, MPC and their relationship

•        Investment Function: API, MPI

•        Equilibrium Output - AD = AS approach and Saving = Investment approach

•        Investment Multiplier: K = 1 / (1 - MPC) = 1 / MPS

•        Inflationary Gap and Deflationary Gap - concept and measures

•        Excess Demand and Deficient Demand - causes and remedies

•        Numericals on Multiplier, MPC, MPS, APC, APS - extremely important

Unit 9: Government Budget and the Economy

•        Government Budget - meaning, objectives, components

•        Revenue Budget vs Capital Budget

•        Types of Receipts: Revenue Receipts, Capital Receipts

•        Types of Expenditure: Revenue Expenditure, Capital Expenditure, Plan, Non-Plan

•        Budget Deficit - Revenue Deficit, Fiscal Deficit, Primary Deficit

•        Measures to correct fiscal deficit

Unit 10: Balance of Payments

•        Balance of Payments (BoP) - meaning, components

•        Current Account vs Capital Account

•        Balance of Trade vs Balance of Payments

•        Surplus and Deficit in BoP - causes and correction measures

•        Foreign Exchange Rate - meaning, types: Fixed, Flexible, Managed Float

•        Determination of exchange rate - demand and supply of foreign exchange

Important Dates 2026-27

Verify all dates on cbse.gov.in before the exam season.

Chapter Priority at a Glance

Study Tips for CBSE Class 12 Economics

1. Practise Numericals Every Day

•        40% of marks come from numerical problems in Micro and Macro

•        Daily practice topics: Elasticity, Cost curves, National Income, Multiplier, MPC, MPS

•        Solve at least 5 numericals per chapter before the exam

2. Draw and Label All Diagrams

•        Diagrams carry 2-3 marks each and appear in every paper

•        Must-know diagrams: PPF, Demand curve, Supply curve, Cost curves, AD-AS, Circular Flow

•        Label every axis, curve, and equilibrium point clearly

3. Master Definitions and Distinguish Concepts

•        CBSE frequently asks distinguish between questions worth 3-4 marks

•        Key pairs: Micro vs Macro, GDP vs GNP, Revenue vs Capital, MPC vs APC, BoT vs BoP

•        Prepare a comparison table for all frequently distinguished concepts

4. Understand Monetary Policy Tools

•        Repo Rate, Reverse Repo Rate, CRR, SLR appear in MCQs and short answers every year

•        Know the effect of each tool on money supply, inflation, and growth

•        Memorise current values of RBI policy rates for viva and application questions

5. Solve Previous Year Papers Under Timed Conditions

•        Solve last 7 years CBSE Economics papers - question patterns repeat

•        Complete the paper in 3 hours - time management is critical in Economics

•        Mark and revisit all questions you skipped - no question should be left blank

Scoring Tips for the Board Exam

•        Attempt MCQs first - 20 straightforward marks to secure early

•        For numerical questions, always write the formula first then substitute values

•        Show all steps in calculations - step marks are awarded even if the final answer is wrong

•        For diagram-based questions, always write a brief explanation alongside the diagram

•        Use economic terminology correctly - GDP, MPC, AD, BoP - do not use casual substitutes

•        For distinguish questions, use a table format - it is easier to read and scores higher

•        In long answer questions, write 6 clear points for 6 marks - one point per mark

•        Never leave a question unattempted - CBSE has no negative marking

Common Mistakes to Avoid

•        Confusing movement along demand curve with shift of demand curve

•        Mixing up APC and MPC formulas - APC = C/Y, MPC = change in C / change in Y

•        Incorrect formula for Multiplier - always K = 1 / (1 - MPC), not just 1 / MPS

•        Forgetting to adjust for Net Indirect Taxes when converting between MP and FC

•        Confusing Revenue Deficit and Fiscal Deficit - clearly distinguish in answers

•        Not drawing diagrams when asked - diagrams are compulsory for full marks

•        Skipping Balance of Payments - it is small but consistently fetches 3-4 easy marks

•        Writing vague answers for 1-mark MCQs - always state the concept directly

Best Resources for Preparation

•        NCERT Economics Class 12 - Part 1 (Micro) and Part 2 (Macro) - most important resource

•        CBSE Sample Papers 2026-27 on cbseacademic.nic.in

•        T.R. Jain and V.K. Ohri - Economics Class 12 - popular reference for practice

•        Sandeep Garg - Economics Class 12 - good for numericals and diagrams

•        CBSE Question Bank - chapter-wise MCQ and numerical practice

Frequently Asked Questions

Q1. What are the two parts in CBSE Class 12 Economics?

The two parts are Part A: Introductory Microeconomics and Part B: Introductory Macroeconomics, each carrying 40 marks in theory.

Q2. Which unit carries the most marks in Economics?

Unit 8: Determination of Income and Employment is the highest-weightage unit in Macroeconomics with 12 marks. In Microeconomics, Units 2 and 3 together carry 26 marks.

Q3. Are diagrams compulsory in CBSE Class 12 Economics?

Yes. Diagrams are expected wherever applicable and carry direct marks. Questions on demand curves, supply curves, cost curves, and AD-AS model require clearly labelled diagrams.

Q4. How important are numericals in Economics?

Numericals are very important and appear in both Micro and Macro. National Income calculations, Elasticity, MPC, MPS, Multiplier, and Cost concepts are regularly tested numerically.

Q5. Is NCERT enough for scoring 90+ in CBSE Class 12 Economics?

NCERT plus T.R. Jain or Sandeep Garg is the recommended combination. NCERT gives conceptual clarity and a reference book provides the practice volume needed for 90+.

Disclaimer

This content is based on the official CBSE Economics curriculum. Always verify the latest syllabus on cbse.gov.in as CBSE may update it.