UP Board Class 12 Economics Syllabus 2026-27 (2027 Exam)

Marks distribution

Total: 100 marks, one single exam paper (no separate internal assessment).

Section A — Introductory Microeconomics:

Unit	Topic	Marks
1	Introduction	4
2	Consumer Equilibrium and Demand	18
3	Producer Behaviour and Supply	18
4	Forms of Market and Price Determination under Perfect Competition	10

Section B — Introductory Macroeconomics:

Unit	Topic	Marks
5	National Income and Related Aggregates	12
6	Money and Banking	8
7	Determination of Income and Employment	14
8	Government Budget and the Economy	8
9	Balance of Payments	8

Topics covered

Unit 1 — Introduction (4 marks): meaning of microeconomics and macroeconomics, positive and normative economics, what is an economy, the central problems of economics — what, how, and for whom to produce; production possibility curve, opportunity cost.

Unit 2 — Consumer Equilibrium and Demand (18 marks): utility, marginal utility, law of diminishing marginal utility, consumer equilibrium via marginal utility analysis; indifference curve analysis — budget set and budget line, consumer preferences (indifference curve and indifference map), consumer equilibrium; demand, market demand, determinants of demand, demand schedule, demand curve and its slope, movement along vs shift of the demand curve, price elasticity of demand and its measurement (percentage-change method).

Unit 3 — Producer Behaviour and Supply (18 marks): production function — total, average, marginal product (short-run and long-run); cost — short-run costs (total, total fixed, total variable, average, average fixed, average variable, marginal cost) and their relationships; revenue — total, average, marginal revenue; producer’s equilibrium (using marginal revenue and marginal cost); supply, market supply, determinants of supply, supply schedule, supply curve and its slope, movement vs shift of the supply curve, price elasticity of supply and its measurement.

Unit 4 — Market Forms and Price Determination (10 marks): perfect competition — features, determinants of market equilibrium and effects of shifts in demand and supply; simple applications of demand and supply — price ceiling, price floor.

Unit 5 — National Income and Related Aggregates (12 marks): basic concepts — 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 — product method, income method, expenditure method; aggregates related to national income — GNP, NNP, GDP, and NDP at market price, real and nominal GDP at factor cost, GDP and welfare.

Unit 6 — Money and Banking (8 marks): meaning and supply of money — currency held by the public and net demand deposits held by commercial banks; money creation by the commercial banking system; central bank and its functions (using the Reserve Bank of India as an example) — bank of issue, government’s bank, banker’s bank; control of credit through the bank rate, CRR, SLR, repo rate, reverse repo rate, and open market operations.

Unit 7 — Determination of Income and Employment (14 marks): aggregate demand and its components; propensity to consume and propensity to save (average and marginal); short-run equilibrium output; involuntary unemployment and full employment; excess and deficient demand and their correction — changes in government spending, taxes, and the money supply.

Unit 8 — Government Budget and the Economy (8 marks): meaning, objectives, and components of a government budget; classification of receipts (revenue and capital) and expenditure (revenue and capital); types of deficits — revenue deficit, fiscal deficit, primary deficit — and their meanings.

Unit 9 — Balance of Payments (8 marks): balance of payments account — meaning and components; balance of payments deficit; foreign exchange rate — meaning of fixed and flexible rates, and managed floating.