Economics

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Economic

Syllabus for Classes 11 & 12

RATIONALE
The economic course in classes XI and XII is intended to provide economic literacy both in Bhutanese and global context. Being a citizen of Bhutan it is important for the students to have knowledge of the Bhutanese economy. This course is designed mainly to lay the foundations for those students pursuing higher studies, besides imparting knowledge and skills necessary for getting employment. This syllabus treats economic theory in relation to Bhutanese economy so that students can analyse and realize the relevant and important issues. It will also enable the students to compare the theories with the real situation prevailing in the Bhutanese and global economic system.

AIMS
The economics course at this level aims: 1. To acquire the knowledge (information) of facts, term, concepts, convention, trends, principles generalization, assumption, hypotheses, problems, processes, etc. in economics. 2. To develop an understanding of facts, term, concepts, conventions, trends, principles, generalization, assumption, hypotheses, problems, processes, etc. in Economics. 3. To acquaint candidates with methods of economic analysis. 4. To develop an understanding of important economic problem. 5. To acquaint candidates with the main institution through which the productive process is carried out. 6. To provide an understanding of present day economic problems and institutions and to develop an understanding of the economic structure in which the candidate lives. 7. To enable candidates to compare their own economic structure with that of other areas of the world.

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Economic LEARNING EXPERIENCES

Syllabus for Classes 11 & 12

In order to make the most out off the economics course offered, the teachers should provide a wide range of learning experiences to students which should include: 1. Project works. 2. Assignments. 3. Group discussions. 4. Class presentations. 5. Films, audio-visuals. 6. Field trips.

LEARNING OUTCOMES
By the end of the course the students should be able to: 1. explain the economic theories, concepts, terms and ideas. 2. identify the basic principles of economics applied in the daily life. 3. locate, select, organise and present information. 4. make deductions from a variety of sources (e.g. photographs, graphs, written, oral, statistics). 5. value the rights and responsibilities of citizens and realise their duty as good citizens of the country. 6. apply the life skills acquired in the real situations. 7. read economic theories in the light of new evidence. 8. plan, discuss and make presentations.

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Syllabus for Classes 11 & 12

CLASS XI ECONOMICS
Unit One: Understanding Economics (30%) (36 hrs) 1.1 1.2 1.3 1.4 Definitions of Economics (definitions of Adam Smith, Alfred Marshall, Lionel Robbins, and Samuelson.) Basic concepts (Utility, price, value, wealth, welfare, money, market, investment, income, production, consumption, and savings.) Basic problems of economy (What to produce, how to produce, for whom to produce, efficient use of resources, economic growth and development.) Types of Economies (Developed, under-developed and developing economies; capitalism, socialism, and mixed economies; solution to basic problems faced by each economy.)

Unit Two: Bhutanese Economy (40%) (56 hrs) 2.1 Introduction to Bhutanese Economics 2.1.1 Characteristics of Bhutanese economy (low income, low rate of capital formation, high dependence on agriculture, high population growth rate, underdeveloped infra-structure, underutilized natural resources, low levels of technology and skills and unemployment.) 2.1.2 Bhutanese Economy as a mixed economy underlining its necessary features. 2.1.3 Bhutanese economy as a planned economy and its related features. Population 2.2.1 Theories of Population (Malthusian and Optimum, demographic transition.) 2.2.2 Salient features of Bhutanese population (High growth rate, age composition of population, sex ratio, occupational distribution, density of population.) 2.2.3 Consequences of population growth in Bhutan. 2.2.4 Population policy of Bhutan. Unemployment 2.3.1 Meaning of unemployment. 2.3.2 Nature and extent of unemployment problem in Bhutan. 2.3.3 Consequences of unemployment problem. 2.3.4 Remedial measures taken in the Bhutanese economy. Poverty in Bhutan 2.4.1 Meaning of Poverty. 2.4.2 Concept of Poverty in Bhutanese context. 2.4.3 Measures taken to remove poverty in Bhutan.

2.2

2.3

2.4

Bhutanese Agriculture 2.5.1 Role of agriculture in Bhutanese Economy (Contribution to national income, contribution to Government revenue, source of raw materials for industrial sector, contribution to international trade, and source of employment.) 2.5.2 Problems of agriculture in Bhutanese economy. 2.5.3 Agricultural Finance in Bhutanese economy. 2.5.4 Agricultural policy in Bhutanese economy. 2.6 Industrial sector in Bhutan 2.6.1 Importance of Industrial growth to the Bhutanese economy. 248 248

2.5

Economic
2.6.2 2.6.3 2.6.4 2.6.5 2.6.6 2.7

Syllabus for Classes 11 & 12

Types of industries in Bhutan. Role of Public sector industries in Bhutan. Role of Private sector enterprises in Bhutan. Government assistance to the industries in Bhutan. Export and import policy of Bhutan.

Service Sector in Bhutan 2.7.1 Importance of service sector in Bhutan. 2.7.2 Transport and its importance. 2.7.3 Communication and its importance. 2.7.4 Tourism and its importance. 2.7.5 Education and its importance. 2.7.6 Medical services and its importance. Human resource development in Bhutan 2.8.1 Significance of human resource. 2.8.2 Components of human resource development (Education and training, health, housing.)

2.8

Unit Three: Money and Banking (20%) (28 hrs) 3.1 3.2 3.3 3.4 Money (Meaning and functions.) Banks (Functions of commercial banks and credit creation by commercial banks) Royal Monetary Authority of Bhutan (Objectives, functions.) Inflation (rate of inflation and its causes, types of inflation, effects of inflation on different groups of society, measures to control inflation and inflation in Bhutan.)

Unit Four: Statistics (10%) (10 hrs) 2.1 2.2 2.3 Human resource development in Bhutan Statistics (Definition, scope and limitations of statistics.) Index numbers (simple and weighted.)

TIME AND WEIGHTING Unit 1. Understanding Economics 2. Bhutanese Economy 3. Money and Banking 4. Statistics Total Hours per unit 36 56 28 10 130 Weighting per unit 30% 40% 20% 10% 100%

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MODE OF ASSESSMENT

Syllabus for Classes 11 & 12

The students will be assessed internally by the school in class XI as per the following procedures. Terms First Term Second Term Total CA 10% 10% 20% Types of Assessment Examination 30% 50% 80% Total 40% 60% 100%

1. Continuous Assessment Assignment and Presentation The students will choose any topic from the class XI syllabus and write a short assignment of about 750 words in the FIRST term and present it to the class in the SECOND term. The work should not be something that is already covered by other classmates. The main purpose of this assignment is to make the students do Literature research on the chosen topic and find information that is not available in the textbook. Marks may be awarded as follows (suggestive only): 2.1. Marking criteria for Assignment Presentation (Table of Contents, Bibliography, Introduction, main body and conclusion) Content (Relevant Information, Analysis and depth) Language (Clarity of ideas, use of accurate terms and grammar)

3% 5% 2%

2.2.

Marking criteria Class Presentation The students will present their assignment to the class in about 10 minutes followed by at least three questions from the classmates and the subject teacher. Marks may be awarded as follows (suggestive only): Content (coverage of main ideas and depth) Language (not memorized but in students own words) Discussion (ability to respond tactfully and correctly) 5% 2% 3%

2. Examination There will be an examination at the end of each term on one paper of three hours duration of 100 marks divided into two parts. However, while entering in the statement of marks it should be converted to 30% for first term and 50% for second term. Part One (30%) will consist of compulsory short questions to test factual knowledge, application and skills related to elementary/fundamental aspects of the entire syllabus. There should be a minimum of 15 questions covering all the units. Part Two (70%). There will be nine essay type questions from where the students will choose seven questions worth 10 marks each. 250 250

Economic

Syllabus for Classes 11 & 12

CLASS XII ECONOMICS

Unit One: Micro Economic Theory (35%) (63 hrs) 1.1. Micro and macro economics. (Meaning and difference.) 1.2. Demand (Meaning; law of demand; derivation of demand curve; movement and shift of the demand curve; determinants of demand; exceptions to the law of demand; indifference curve analysis: meaning, indifference curve and map; marginal rate of substitution, properties of indifference curve, budget-line (meaning only); comparison of utility and indifference curve analysis.) 1.3. Elasticity of Demand (Meaning; types of elasticity of demand; measurement of elasticity of demand; factors affecting elasticity of demand; importance of the concept of elasticity.) 1.4. Supply (Meaning; difference between stock and supply; time period and supply; law of supply; movement and shift of the supply curve; determinants of supply; elasticity of supply.) 1.5. Concept of product and production function. (Returns to a factor, total, average and marginal physical products; law of variable proportions and its three stages; returns to scale.) 1.6. Equilibrium price and effect of changes in demand and supply on the Equilibrium Price. 1.7. Revenue and cost (Meaning of total, average and marginal revenue. Relationship between AR and MR under Perfect, Imperfect Competition and Monopoly. Fixed and variable cost. Total, average and marginal cost and their relationship. Definition and application opportunity cost; explicit and implicit cost: short run and long run cost curve; Internal and external economies, equilibrium of the firm.) 1.8. Main market Forms (Perfect Competition, Imperfect Competition; Oligopoly, Monopoly characteristics of the various market forms; equilibrium of firm under short run and long run under various market forms.) 1.9. The Theory of Distribution (Marginal productivity theory of distribution: wages: determination of wages under marginal productivity theory and modern theory: collective bargaining. Rent: Ricardian theory of rent, economic rent, transfer earning; gross and net interest; gross and net profit.)

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Unit Two: National Income (15%) (17 hrs) 2.1. Circular flow of Income. 2.2. Nature of goods and services produced.

Syllabus for Classes 11 & 12

2.3. Concepts and definitions of NY, GNP, GDP, NNP, private income, personal disposable income and per capita income; relationship between the income concepts. 2.4. Methods of measuring National Income (Product or value-added method; Income Method and Expenditure Method with simple numerical example based on only operating surplus and compensation of employees.) 2.5. Gross National Happiness (Emergence, meaning, significance and its difference with GDP.) Unit Three: Trade (15%) (12 hrs) 3.1. Need for trade, meaning of trade and basis of trade in Bhutan. 3.2. Internal and external trade (differences, merits and demerits.) 3.3. Balance of payments (Balance of trade; meaning and causes of disequilibrium in the B.O.P.; measures to correct disequilibrium in B.O.P.) Unit Four: Public Finance (25%) (30 hrs) 4.1. Public Revenue (Meaning and types of taxes in Bhutan; Direct and indirect taxes: merits and demerits; progressive, proportional, regressive, digressive: meaning only; sources of government revenue: names only; VAT, MODVAT.) 4.2. Public Expenditure (Meaning and reasons for growth of public expenditure in recent times in Bhutan.) 4.3. Public debt (Meaning; reasons for external and internal borrowing by the government; methods of debt redemption; effects of borrowing on the Bhutanese economy.) 4.4. Fiscal Policy in relation to objectives of equality, stability and growth. 4.5. Deficit financing (Reasons, methods effects of deficit financing in Bhutan.) 4.6. Budget (Need; types; budgetary policy of Bhutan; budgetary procedure in the preparation of budget in Bhutan in brief.)

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Unit Five: Development Planning (10%) (8 hrs) 5.1. Planning in Bhutan (Need and objectives of planning.) 5.2. The last three Five Year Plans (7th, 8th and 9th.) 5.3. Outcomes of Five Year Plans in Bhutan TIME AND WEIGHTING Unit Micro Economic Theory National Income Trade Public Finance Development Planning Total

Syllabus for Classes 11 & 12

Hours per unit 63 17 12 30 8 130

Weighting per unit 35% 15% 15% 25% 10% 100%

Mode of Assessment The students will be assessed externally by the Bhutan Board of Examinations in class XII. However, the schools will conduct internal assessments similar to that of class XI. The internal assessment will have no bearing on the external examination. 1. Internal Assessment Follow the table below for the internal assessment. Terms First Term Second Term Total 1.1 Continuous Assessment Assignment and Presentation: The students will choose any topic from the class XII syllabus and write a short assignment of about 750 words in the FIRST term and present it to the class in the SECOND term. The work should not be something that is already covered by other classmates. The main purpose of this assignment is to make the students do Literature research on the chosen topic and find information that is not available in the textbook. Marks may be awarded as follows (suggestive only): Marking criteria for Assignment Presentation (Table of Contents, Bibliography, Introduction, main body and conclusion) 3% Content (Relevant Information, Analysis and depth) 5% Language (Clarity of ideas, use of accurate terms and grammar) 2% CA 10% 10% 20% Types of Assessment Examination 30% 50% 80%

Total 40% 60% 100%

Marking criteria Class Presentation 253 253

Economic

Syllabus for Classes 11 & 12

The students will present their assignment to the class in about 10 minutes followed by at least three questions from the classmates and the subject teacher. Marks may be awarded as follows (suggestive only): Content (coverage of main ideas and depth) Language (not memorized but in students own words) Discussion (ability to respond tactfully and correctly) 5% 2% 3%

1.2 Examination There will be an examination at the end of first term and a Trial examination at the end of the year on one paper of three hours duration of 100 marks divided into two parts. However, while entering in the statement of marks it should be converted to 30% for first term and 50% for second term. Part One (30%): This will consist of compulsory short questions to test factual knowledge, application and skills related to elementary/fundamental aspects of the entire syllabus. There should be a minimum of 15 questions covering all units. Part Two (70%): There will be nine essay type questions from where the students will choose seven questions worth 10 marks each. 2. External Examination by Bhutan Board of Examinations. There will be one paper of three hours duration of 100 marks divided into two parts. Part One (30%) will consist of compulsory short questions to test factual knowledge, application and skills related to elementary/fundamental aspects of the entire syllabus. There should be a minimum of 15 questions covering all units. Part Two (70%). There will be nine essay type questions from where the students will choose seven questions worth 10 marks each.

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TEXTBOOKS & REFERENCES

Syllabus for Classes 11 & 12

Textbooks 1. Sethi, D.K. and Andrews, U., 2003, Frank ISC Economics for Class XI, Frank Bros & Co. (Publishers) Ltd. 2. Sethi, D.K. and Andrews, U., 2004, Frank ISC Economics for Class XII, Frank Bros & Co. (Publishers) Ltd. References 1. Lekhi, R.K., 2003, ISC Economics for Class XI, Kalyani Publishers. 2. Lekhi, R.K., 2003, ISC Economics for Class XII,

Kalyani

Publishers.

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