Economics HSC Arts Class 12 Tamil Nadu Board of Secondary Education Syllabus 2024-25

• Capitalistic Economy (Capitalism)

• Features of Capitalistic Economy
• Merits of Capitalism 
• Demerits of Capitalism

• Socialistic Economy (Socialism)

• Features of Socialism
• Merits of Socialism
• Demerits of Socialism

• Mixed Economy (Mixedism)

• Features of Mixed Economy
• Merits of Mixed Economy
• Demerits of Mixed Economy

• Comparison of Different Economic Systems

• Kenneth Boulding's definition of Macro Economics

• Circular Flow of Income in a Two-Sector Economy
• Circular Flow of Income in a Th ree-Sector Economy
• Circular Flow of Income in a Four-Sector Economy

• Precautions

• Product Method
• Income Method (Factor Earning Method)
• The Expenditure Method (Outlay method)

• Difficulties

• Transfer payments
• Difficulties in assessing depreciation allowance
• Unpaid services
• Income from illegal activities
• Production for self-consumption and changing price
• Capital Gains 
• Statistical problems

• Social Accounting and Sector
• National Income and Welfare
• National Income & Erosion of national Wealth
• National income in terms of US$
• Social and Environmental Cost

• Types of unemployment

1. Cyclical Unemployment
2. Seasonal Unemployment
3. Frictional Unemployment
4. Educated Unemployment
5. Technical Unemployment
6. Structural Unemployment
7. Disguised Unemployment

• Say’s Law of Market

• Assumptions of the Say’s law of market
• Implications of Say’s Law
• Criticisms of Say’s Law

• Aggregate Demand Function (ADF)
• Aggregate Supply Function (ASF)
• Equilibrium between ADF and ASF

• Meaning of Consumption Function
• Technical Attributes of the Consumption Function

1. The Average Propensity to Consume
2. The Marginal Propensity to Consume
3. The Average Propensity to Save (APS)
4. The Marginal Propensity to Save (MPS)

• Keynes’s Psychological Law of Consumption
• Determinants of Consumption function: Subjective and Objective Factors

• Meaning of investment
• Types of investment
• Determinants of Investment Function
• Relationship between rate of interest and Investment
• Marginal Efficiency of Capital
• Marginal Efficiency of Investment

• Assumptions of Multiplier
• Marginal propensity to consume and multiplier
• Working of Multiplier
• Classification of Multiplier
• Leakages of multiplier
• Uses of multiplier

• Meaning
• Definition
• Assumptions
• Operation of the Acceleration Principle
• Limitations

• Leverage Effect

• Meaning
• Definitions
• Evolution of Money

1. Barter System
2. Metallic Standard
3. Gold Standard
4. Silver Standard
5. Paper Currency Standard
6. Plastic Money
7. Crypto Currency

• Functions of Money

1. Primary Functions
2. Secondary Functions
3. Contingent Functions
4. Other Functions 

• Meaning of Money Supply
• Determinants of Money Supply

• Meaning of Inflation
• Types of Inflation
• Causes of Inflation
• Effects of Inflation
• Measures to Control Inflation 

• Meaning of Trade Cycle
• Phases of Trade Cycle

• Meaning of Commercial Banks
• Functions of Commercial Banks

1. Primary Functions
2. Secondary Functions
3. Other Functions

• Mechanism / Technique of Credit Creation by Commercial Banks

• Primary / Passive Deposit and Derived / Active Deposit

•  Role of Commercial Banks in the Economic Development of a Country

1. Capital Formation
2. Creation of Credit
3.  Channelizing the Funds towards Productive Investment
4. Encouraging Right Type of Industries
5. Banks Monetize Debt
6. Finance to Government
7. Employment Generation
8. Banks Promote Entrepreneurship

•  Functions of Central Bank (Reserve Bank of India)
• Credit Control Measures
• Methods of Credit Control

1. Quantitative or General Methods
2. Qualitative or Selective Method of Credit Control

• Reserve Bank of India and Rural Credit
• Role of RBI in agricultural credit
• Functions of Agriculture Credit Department

• Objectives of the ARDC

• Concessions to RRBs

• Functions of NABARD

• Institutional Set-up
• All-India Level Institutions

1. Industrial Finance Corporation of India (IFCI)
2. Industrial Credit and Investment Corporation of India (ICICI)
3. Industrial Development Bank of India (IDBI)

• State Level Institutions

1. State Financial Corporation (SFCs)
2. State Industrial Development Corporations (SIDCOs)

• Monetary Policy: Expansionary Vs. Contractionary
• Objectives of Monetary Policy
• The specific objectives of monetary policy are

1. Neutrality of Money
2. Stability of Exchange Rates
3. Price Stability
4. Full Employment
5. Economic Growth
6. Equilibrium in the Balance of Payments

• E- Banking
• RTGS and NEFT
• ATM (Automated Teller Machine)
• Paytm
• Debit card and Credit Card
• Recent Issues
• Merger of Banks 

Money Market - Money Market Instruments

• Primary Market

1. Public Issue
2. Rights Issue
3. Private Placement

• Secondary Market

• Objectives of Demonetisation

• Pure Theory of Trade
• Policy Issues
• International Cartels and Trade Blocs
• International Financial and Trade Regulatory Institutions

• Introduction
• Meaning
• Classification of Trade

1. Internal Trade
2. External trade 

• Differences between ‘Internal Trade’ and ‘International Trade’

• The Classical Theory of International Trade
• Adam Smith’s Theory of Absolute Cost Advantage
• Ricardo’s Theory of Comparative Cost Advantage
• Modern Theory of International Trade
• Comparison of Classical Theory and Modern Theory

• Efficient Production
• Equalization of Prices between Countries
• Equitable Distribution of Scarce Materials
• General Advantages of International Trade

• Meaning
• Types of Terms of Trade

1. Net Barter Terms of Trade
2. Gross Barter Terms of Trade
3. Income Terms of Trade

• Terms of Trade related to the Interchange between Productive Resources

1. The Single Factoral Terms of Trade
2. Double Factoral Terms of Trade

• Balance of Trade (BOT)
• Balance of Payments (BOP)
• Components of BOPs
• Balance of Payments Disequilibrium
• Types BOP Disequilibrium
• Causes for BoP Disequilibrium
• Measures to Correct BOP Disequilibrium

1. Automatic Correction
2. Deliberate Measures
3. Trade Measures
4. Miscellaneous Measures

• Meaning of Foreign Exchange (FOREX)
• Definition of FOREX
• Rate of Exchange
• Defi nition of Equilibrium Exchange Rate
• Determination of Equilibrium Exchange Rate
• Types of Exchange Rate Systems

1. Fixed Exchange Rates
2. Flexible Exchange Rates

• Types of Exchange Rates 
• Determinants of Exchange Rates

1. Differentials in Inflation
2. Differential in Interest Rates
3. Current Account Deficits
4. Public Debt
5. Terms of Trade
6. Political and Economic Stability
7. Recession
8. Speculation

• Meaning of FDI
• Objectives of FDI 
• Advantages of FDI
• Disadvantages of FDI
• FDI in India 

1. The major sectors benefited from FDI in India
2. FDI is not permitted in the industrial sectors

• • Objectives of IMF 
  • Functions of IMF
  • Facilities offered by IMF
  • Achievements of IMF
  • IMF AND INDIA
  • Free Convertibility of Indian Rupee
  1. Loan For Development Activities
  2. Ability To Purchase Foreign Currency
  3. Expert Advice
  4. Timely Help
  5. Financial Assistance during Natural Calamity
  6. Membership in World Bank
  7. Help During 1991 Economic Crisis

• Objectives of IBRD
• Functions of IBRD
• Achievements of World Bank
• India and World Bank

• Objectives of WTO
• Functions of WTO
• Achievements of WTO
• WTO and India

• Objectives of SAARC
• Council
• Functions of SAARC
• Achievements of SAARC

• Definitions

• Public Revenue 
• Public Expenditure
• Public Debt
• Financial Administration
• Fiscal Policy

• Comparison between Public Finance and Private Finance
  • Similarities
  • Dissimilarities

• Defence
• Judiciary
• Enterprises
• Social Welfare
• Infrastructure
• Macro-economic policy
• Social Justice
• Control of Monopoly

• Meaning
• Definitions 
• Characteristics of Tax 
• Non-Tax Revenue
• Canons of Taxation
• Direct Tax and Indirect Tax
• Merits of Direct Taxes
• Demerits of Direct Taxes
• Indirect Tax
• Merits of Indirect Taxes
• Demerits of Indirect Taxes
• Comparison Chart
• GST (Goods and Service Tax)

• Definitions
• Union Budget and State Budget 
• Types of Budget

1. Revenue and Capital Budget 

• Budgetary Procedure
• Budgetary Deficits

• Central State Financial Relationship
• Principles of Federal Finance

1. Principle of Independence
2. Principle of Equity
3. Principle of Uniformity
4. Principle of Adequacy
5. Principle of Fiscal Access
6. Principle of Integration and coordination
7. Principle of Efficiency
8. Principle of Administrative Economy
9. Principle of Accountability

• History of Finance Commission

• Types of Local Bodies

1. Village Panchayats
2. District Boards Or ZilaParishads
3. Municipalities
4. Municipal Corporations

• Meaning of Fiscal Policy
• Definitions
• Fiscal Instruments
• Objectives of Fiscal Policy

1. Full Employment
2. Price stability
3. Economic growth
4.  Equitable distribution
5. External stability
6. Capital formation
7. Regional balance

• Meaning of Environmental Economics 

• Ecosystem
• Basic categories of ecosystem
  1) Terrestrial
  2) Aquatic

• Meaning of Externalities
• Definitions
• Classification of Externalities

1. Positive Consumption Externality
2. Negative Consumption Externality
3. Positive Production Externality
4. Negative Production Externality

• Meaning
• Types of Pollution 

1. Air pollution
2. Water Pollution
3. Noise Pollution 
4. Land Pollution 

• Classification of Pollutants

• Global Warming
• Causes of Global warming
• Effect of Global Warming

• Climate in the recent past

• Acid rain
• Formation of acid rain
• Harmful effects of acid rain

1. Effect on vegetation
2. Effect on aquatic life
3. Effect on fertility of the soil
4. Effect on buildings and monuments

• Effect on human health
• Effect on ecological balances

• Solid Waste

• Case Study - Indira Gandhi Canal (Nahar) Command Area
• Measures for Promotion of Sustainable
  Development

• Introduction
• Approaches to Economic Development

1.  Traditional Approach
2. New Welfare oriented Approach

• Meaning of Underdevelopment

• State of Development
• Nature and Level of Change
• Scope of Change
• Extent of change

• Gross National Product (GNP)
• GNP per capita
• Welfare
• Social Indicators

• Economic Factors
• Non- Economic Factors

• Breaking the Vicious Circle of Poverty

• Meaning and features of Planning
• Type of Plan
• Importance of Planning
• Economic Planning in India
• Case for planning
• Case against planning
• Target Area Planning
• Hill Area Development Programme
• Drought Prone Area Programme
• Case Study – Integrated Tribal Development Project in Bharmaur* Region

• Democratic Vs Totalitarian
• Centralized Vs Decentralized
• Planning by Direction Vs Inducement
• Indicative Vs Imperative Planning
• Short, Medium and Long term Planning
• Financial Vs Physical Planning
• Functional Vs Structural Planning
• Comprehensive Vs Partial Planning

• Introduction
• Think-Tank Functions
• Structure of NITI Aayog
• Functions of NITI Aayog

• Statistics and Economics
• Statistics and Firms
• Statistics and Commerce
• Statistics and Education
• Statistics and Planning
• Statistics and Medicine
• Statistics and Modern applications

• Statistics is not suitable to the study of qualitative phenomenon
• Statistical laws are not exact
• Statistics table may be misused:
• Statistics is only one of the methods of studying a problem

• Descriptive Statistics
• Inferential Statistics

• Quantitative data
• Qualitative data
• Sources of Collection of data

1. Primary data
2. Secondary data

1. Variance and Standard Deviation for raw data
2. Variance and Standard Deviation for ungrouped frequency distribution
3. Variance and Standard Deviation for grouped frequency distribution

• Meaning of Correlation
• Types of correlation

1. Positive Correlation
2. Negative Correlation
3. Simple correlation

• Scatter Diagram
• Karl Pearson’s Correlation Coefficient

• Evolution of Regression
• Difference between Correlation and Regression
• Two Regression lines

1. X on Y => X = a + by
2. Y on X => Y = a + bx

• Origin Of Econometrics
• Objectives Of Econometrics
• Methodology Of Econometrics

• Central Statistical Office (CSO)
• National Sample Survey Organisation (NSSO)