NEB Class 12 Economics Curriculum

Economics (Eco. 304)
Syllabus

Full marks: 75 (Pass marks: 24)

Course Contents:

Unit 1: Basic Concept of Economics and Resource Allocation

1. Concepts of Scarcity and Choice
2. Concept of Opportunity Cost
   
3.  Production Possibility Curve (PPC): Concepts, Shape and Shift
4. Concept of Allocation of Resources
5. Division of Labor and Specialization: Advantages and Disadvantages
6. Economic System: Types and Features
   

Unit 2: Microeconomics

1. Market and Revenue Curves
   1. Concept of Market: Perfect Competition and Imperfect Competition, Types of Imperfect Competition (Oligopoly, monopoly and monopolistic competition)
   2. Concept of total, average and marginal revenue
   3. Derivation of average revenue and marginal revenue curves from total revenue curve under perfect competition and monopoly market.
   4. Simple numerical examples
2. Cost Curves
   1. Concept of explicit, implicit, fixed, variable, total, average and marginal cost
   2. Short run cost and derivation of short run cost curves
   3. Simple numerical examples
3. Theory of price and output determination
   1. Definition of perfect competitive market, characteristics, firm and industry, short-run and long-run Equilibrium price and output determination
   2. Definition and characteristics of monopoly market, price and output determination of firm or industry
   3. Simple numerical examples
4. Factor pricing
   1. Concept of factor pricing
   2. Rent: The concept of economic rent and contract rent, Ricardian Theory of Rent
   3. Wages: Money wages and real wages, subsistence theory of wages, wage fund theory of wages
   4. Interest: Gross interest and net interest, the classical theory of interest
   5. Profit: Gross profit and net profit, risk theory of profit and uncertainty bearing theory of profit

Unit 3: Macroeconomics

1. Banking system and monetary policy
   1. Role of banking system in an economy
   2. Classification of banks: Central bank, Commercial Bank, Development Bank, Financial institution and Microfinance
   3. Functions of Central Bank in context of Nepal
   4. Function of commercial bank in context of Nepal.
   5. Concept of Money and capital market
   6. Monetary policy: meaning and type
   7. Provincial Distribution of Commercial banks and Development banks in Nepal.
2. Government Finance
   1. Concept and importance of government finance.
   2. Classification of government expenditure in context of Nepal.
   3. Concept of direct tax and indirect tax, Concept of progressive tax, proportional and regressive tax
   4. Characteristics of good tax system
   5. Government revenue: tax and non-tax sources in context of Nepal
   6. Government debt: Concepts of internal and external debt.
   7. Government budget: Stages of budget formulation in context of Nepal.
3. International Trade
   1. Concept and importance of international trade
   2. The concept of balance of trade and balance of payment
   3. Measures to reduce trade deficit in the context of Nepal
   4. Exchange rate: Concepts and Types
   5. Free trade and Protectionism: Advantages and Disadvantages
   6. Theory of comparative advantage of international trade

Unit 4: Development Economics

1. Poverty, Inequality, Unemployment & Human Resources
   1. Concept of Poverty, Inequality & Unemployment
   2. Causes of Poverty and Inequality, Measures to Minimize Poverty and Inequality
   3. Unemployment: Types, causes & measures to create employment
   4. Human Resources: Concepts and Roles
   5. Concepts of Human Development Indicators and Human Development Index
   6. Current Population Status  of Nepal (Size, growth, Structure, distribution)

Unit 4: Nepalese Economy

1. Nepalese foreign trade and foreign employment
   1. Concepts of Nepalese Foreign Trade
   2.  Growth, Direction, Composition and Problems of Nepalese Foreign Trade
   3. Concepts of World Trade Organization (WTO) and South Asian Free Trade Area (SAFTA)
   4. Foreign Employment and Remittance: Current status, Advantages and Disadvantages
2. Development Planning of Nepal
   1. Concept of Development plan
   2. Objectives, priorities, and policies of the current plan.
   3. General Evaluation of previous plan
   4. Process of Plan Formulation in Nepal
      
3. Sustainable Development Goals of UN and Nepal
   1. Concepts of Sustainable Development Goals of UN: 17 Goals
   2. No Poverty and Nepal
   3. Zero Hunger and Nepal
   4. Decent labour, Economic Growth and Nepal
   5. Quality Education and Nepal

Unit 6: Quantitative Techniques in Economics

1. Review of Basic Statistics: Definition, Scope, Importance, and Limitation of Statistics
2. Data Collection: Method of Collecting Primary Data, Sources of Secondary Data
3. Deviation, Coefficient of Variance (CV) and characteristics of variance
4. Index Number: Price Index,  Laspeyre's and Paasche's Price Index Number