ISC Class 12 Economics Syllabus 2022

ISC Class 12th Economics Syllabus 2023: Economics is the study of the production, distribution, and consumption of goods and services by individuals and groups. Economics (Code: 856) is an elective subject in ISC Class 12 and is a favourite of students from all streams, be it humanities, science, or commerce. Economics plays a big role in the smooth functioning of the world and is one of the oldest yet constantly evolving topics of study. The ISC Class 12 Economics syllabus also covers many essential concepts of Economics like demand, supply, banking, income and employment, etc. The ISC Class 12 Economics syllabus is vast and offers in-depth theoretical and practical knowledge to students. With the ISC Class 12 exam date coming near, take a look at the ISC Board Class 12 Economics syllabus to make sure you haven’t missed preparing any topics. Read here and download the latest and revised ISC Class 12 Economics syllabus 2023 in pdf format.

ISC Class 12th Datesheet 2023: Check the full date sheet with the guidelines here

ISC Board Class 12 Economics Syllabus

The ISC class 12 Economics subject is divided into two papers: theory and project work. The Paper 1: Theory carries 80 marks and the duration will be 3 hours. The Project Work will carry 20 marks. Check here the ISC Board Class 12 Economics Syllabus along with unit-wise marks distribution below.

PAPER – I (THEORY) – 80

DISTRIBUTION OF MARKS FOR THE THEORY PAPER

1. Micro Economic Theory

(i) Demand

Meaning, factors affecting demand; Demand function; Law of Demand; derivation of demand curve; movement and shift of the demand curve; exceptions to the Law of Demand.

Law of Diminishing Marginal Utility, Law of Equimarginal Utility, consumer’s equilibrium through utility approach (Cardinal) and indifference curve analysis (Ordinal).

The concept of demand: meaning, types of demand. A demand function to be specified incorporating the determinants of demand. Diagrams should be used in explaining the Law of Demand, reasons for downward slope of demand curve, its derivation using demand schedule. Derivation of market demand curve from individual demand curve.

(a) Cardinal Utility Analysis: meaning of utility, total utility, marginal utility, relationship of TU and MU, Law of Diminishing Marginal Utility (schedule and diagram, Only assumptions to be taught, criticisms not required), Consumer’s equilibrium – one commodity (schedule and diagram), Law of Equimarginal Utility (statement, schedule) and conditions of consumer’s equilibrium using marginal utility; (b) Ordinal Utility Analysis: Indifference Curve – its meaning and properties (including MRS and DMRS), indifference map, consumer’s budget line, Consumer’s equilibrium – condition (to be explained with the help of a diagram).

(ii) Elasticity of Demand

Meaning, types of elasticity of demand, measurement of elasticity of demand; factors affecting elasticity of demand.

Various methods of measurement of the elasticity of demand: point method – percentage method, expenditure method and geometric method. (Numericals required on percentage method only). The cross and income elasticity of demand must be explained. Degrees of elasticity of demand to be explained. Use diagrams wherever necessary.

(iii) Supply

Meaning; difference between stock and supply; determinants of supply; Law of Supply; movement and shift of the supply curve; elasticity of supply

Difference between stock (intended supply) and supply (actual supply) with the help of relevant examples. A supply function should be specified and explained. Law of Supply: Meaning, supply schedule and supply curve. Derivation of market supply curve from individual supply curve. Movement and shift of the supply curve, exceptions to the Law of Supply. Elasticity of Supply: Meaning, degrees of elasticity of supply and measurement of elasticity of supply by percentage method and geometric method.

(iv) Market Mechanism

Equilibrium and disequilibrium; Equilibrium price and effect of changes in demand and supply on the equilibrium price. Simple applications of tools of demand and supply.

A basic understanding of the concept of equilibrium. The effects of changes in demand and supply – both along the curves and shift of the curves to be explained. Basic understanding of Price control, rationing, Price ceiling and Floor price with the help of demand and supply curves.

(v) Concepts of Production

Concept of production and production function (short run and long run production function), returns to a factor, returns to scale (meaning only) total, average and marginal physical products; Law of Variable Proportions and its three stages.

A production function (concept only). Law of Variable Proportions: statement, assumptions, schedule (for the purpose of understanding and not for testing), diagram and explanation to the three stages.

(vi) Cost and Revenue

Basic concepts of cost; fixed cost, variable cost, total cost, marginal cost and average cost – their relationships; opportunity cost; short run and long run cost curves. Revenue: meaning; average revenue, marginal revenue and total revenue and their relationships 3

under perfect competition and imperfect competition, Producer’s equilibrium.

Basic concepts – private cost, economic cost, social cost, money cost, real cost, explicit cost, implicit cost.

Cost concepts – Fixed cost, variable cost, total cost, marginal cost, average cost with schedule and diagram; relationship between average cost, marginal cost, total cost (only concepts of long run and short run cost curves, derivations not required). Opportunity cost – meaning only. Difference between accounting cost and opportunity cost.

Revenue – Average revenue, marginal revenue, total revenue – concepts and relationships under perfect competition and imperfect competition. Producer’s equilibrium (Profit maximization goal) – meaning; conditions: (a) TR and TC approach along with diagram (b) MR and MC approach along with diagram.

(vii) Main market forms and Equilibrium of a firm

Perfect competition, monopolistic competition, oligopoly, monopoly, monopsony; characteristics of the various market forms; equilibrium of a firm in perfect competition under short run and long run.

Features of perfect competition, monopolistic competition, oligopoly, monopoly and monopsony (meaning only). Equilibrium of a firm in perfect competition under short run (explanation and diagram, shut down point and break-even point) and long run (diagram not required).

2. Theory of Income and Employment

Basic concepts and determination of Income and Employment

The concept of demand (exante) and effective (expost) demand. Aggregate demand and its components, propensity to consume and propensity to save (average and marginal), equilibrium output (aggregate demand and aggregate supply approach and saving and investment approach); investment multiplier (its meaning and mechanism with the help of a diagram). Simple numerical based on the above. Meaning of full employment. Problems of excess demand and deficient demand; measures to correct them.

3. Money and Banking

(i) Money: meaning, functions of money, supply of money.

Meaning, kinds of money, functions of money (primary, secondary and contingent) to be explained; supply of money (only meaning of M0, M1, M2, M3 & M4). Inflation: meaning, demand pull and cost push (diagrams not required)

(ii) Banks: functions of commercial bank; high powered money, credit creation by commercial banks; Central Bank: functions.

Basic understanding of the functions of commercial banks, credit creation process with limitation. The regulatory role of the Central Bank, its functions and the way it controls the flow of credit needs to be explained. A brief mention may be made of quantitative CRR, SLR, Bank Rate policy (repo rate and reverse repo rate) and Open Market Operations) and qualitative methods.

4. Balance of Payment and Exchange Rate

Balance of Payment – meaning, components; foreign exchange – meaning, determination of exchange rate (Flexible).

Balance of Payment – Meaning and components; Causes of disequilibrium and how the disequilibrium can be corrected; Foreign Exchange Rate – meaning, meaning of fixed and flexible exchange rate, determination of exchange rate in a free market. Concepts of depreciation, appreciation, devaluation and revaluation (meaning only).

5. Public Finance

(i) Fiscal Policy: meaning and instruments of fiscal policy.

Meaning and instruments of fiscal policy – Public Revenue: Meaning, taxes (Meaning and types), difference between direct and indirect taxes; Public Expenditure: Meaning and importance; Public Debt: Meaning and redemption; Deficit Financing: meaning.

(ii) Government Budget: meaning, types and components.

Meaning and types of Government budget – union, state; components – revenue and capital. Concept of deficit budget: revenue deficit, fiscal deficit, primary deficit – their meaning and implications.

6. National Income

(i) Circular flow of Income.

A simple model explaining the circular flow of income with two, three and four sector models with leakages and injections.

(ii) Concepts and definition of NY, GNP, GDP, NNP, private income, personal income, personal disposable income, National Disposable Income and per capita income; relationship between the income concepts.

A brief understanding of the mentioned national income aggregates is needed. The concepts of GNP and NNP should be explained both at factor cost and market prices, real GDP and nominal GDP, National Disposable Income (Gross and Net), GDP and Welfare, GDP as an indicator of Economic welfare.

(iii) Methods of measuring National Income: product or value-added method; income method and expenditure method with simple numericals based on them.

Simple numericals based on all the methods to be covered for better understanding of the concept. Precautions and difficulties of measuring National Income for each method.

PAPER II – PROJECT WORK – 20 Marks

Mark allocation for each Project [10 marks]:

A list of suggested Projects is given below:

1. Study a Public Sector Enterprise with reference to its relevance to the Indian Economy and its future prospects. Analyse the trend of its growth for the last ten years.
2. Conduct a Socio-Economic survey of a locality (minimum sample size should be 30 households) with reference to:

(a) Demographic features.

(b) Consumption Pattern – Expenditure on necessities, comforts and luxuries.

(c) Occupational structure.

3. Compare the contribution made by different sectors of the economy towards GDP growth during the planning period.
4. Prepare a report on the competition in the Aviation Sector in India with reference to:

(a) Performance of the Public Sector and Private Sector.

(b) Operational strategies adopted by budget/low cost carriers.

5. Make a comparative analysis of lending performance of five Commercial Banks in the past six years with reference to the changing CRR and SLR.
6. Many thinkers believe that we are rapidly depleting our natural resources. Assume that there are only two inputs (labour and natural resources) producing two goods (wheat and gasoline) with no improvement in technology over time. Show what would happen to the Production Possibility Curve over time as natural resources are exhausted. How would invention and technological improvement modify your answer? On the basis of this example, explain why it is said “economic growth is a race between depletion and invention.”

7. Make a comparative study of the allocation of financial resources of the Central Government Budget on Agriculture, Defence, Industry and Education in the last ten years. Prepare a report on your observations.
8. Prepare a trend Analysis of Growth and Productivity of any one industry such as:

Textile / Automobiles / Electronic and Tele-communication, etc. in India for the past ten years.

Download and read the ISC Class 12th Economics Syllabus 2022-23 below.

The ISC Class 12 final exams are quickly approaching and the date sheet has also been released. Check the ISC Class 12 mock tests here to practice the concepts learned in the ISC class 12 Economics syllabus.

ISC – Class 12 Mock Tests