MP Board Class 12 Economics Syllabus 2026-27

Session

Higher Secondary (Class 12) examination 2026-27, Board of Secondary Education, Madhya Pradesh. Subject: Economics (Arts and Commerce).

Part A — Introductory Microeconomics (व्यष्टि अर्थशास्त्र)

Introduction Central problems of an economy; economic activity organisation (planned vs market economy); positive vs normative economics; micro vs macro economics.

Consumer Behaviour and Demand Utility (cardinal and ordinal); consumer budget and budget line; consumer’s optimum choice; demand curve and law of demand; derivation from indifference curves; normal/inferior goods; substitutes/complements; shifts vs movements along demand; market demand; price elasticity of demand and its determinants; relationship between elasticity and expenditure.

Producer Behaviour and Supply Production function (short and long run); total, average, and marginal product; law of variable proportions; returns to scale; cost (short-run and long-run); perfect competition — features, revenue, profit maximisation (conditions 1–3 with diagrams); firm’s supply curve (short and long run); shutdown point; normal and break-even points; determinants of supply; market supply; price elasticity of supply.

Market Equilibrium Equilibrium; excess demand and excess supply; applications of price ceilings and floors.

Part B — Introductory Macroeconomics (समष्टि अर्थशास्त्र)

Introduction Emergence of macroeconomics; basic concepts in national income accounting.

National Income Accounting Circular flow of income; methods of calculating national income (product/value added, expenditure, income); factor cost vs market prices; GDP and welfare; nominal vs real GDP.

Money and Banking Functions of money; demand and supply of money; credit creation by banking system (money multiplier); policy instruments to control money supply.

Income Determination Aggregate demand and its components; consumption; income determination in short run with fixed price level; multiplier mechanism; other related concepts.

Government Budget and the Economy Budget meaning and components; classification of receipts; capital account; balanced, surplus, and deficit budgets; measurement of fiscal deficit.

Balance of Payments Current account; capital account; balance of payment deficit/surplus; foreign exchange market; exchange-rate determination; fixed vs floating rates; managed floating.