# [ISC] Economics Syllabus Class 12 (2023-24)

Looking for Economics syllabus class 12 of ISC Board 2023-24.

Don’t worry I have explained the syllabus of Class 12 Economics syllabus of the ISC Board for the 2023-24 Session.

## Syllabus of Economics class 12 ISC Board 2023-24

There will be two papers on the subject. Following are the brief detail.

Read Here:- [ISC Board] TS Grewal Solutions Accounts Class 12 2022-23

### Detail of Paper – I (Theory) 80 Marks

The Theory paper of Economics class 12 of ISC Board consists of 2 Parts

Part – I

Part – II

Let’s Discuss both the part in detail

Read Here:- Accounts Syllabus class 12 ISC Board 2023-24

Micro Economic Theory

Section – 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, the reasons for the downward slope of the demand curve, and its derivation using the demand schedule. Derivation of the market demand curve from the individual demand curve.

(a) Cardinal Utility Analysis: meaning of utility, total utility, marginal utility, the 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 – it’s 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).

Section – 2

The 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.

Section – 3

Supply: meaning; the 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.

The elasticity of Supply: Meaning, degrees of elasticity of supply, and measurement of elasticity of supply by percentage method and geometric method.

Section – 4

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.

Section – 5

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 of the three stages.

Section – 6

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 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; the 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 a diagram.

Section – 7

Main market forms: perfect competition, monopolistic competition, oligopoly, monopoly, monopsony; characteristics of the various market forms; equilibrium of a firm in perfect competition in 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).

Theory of Income and Employment

Basic concepts and determination of Income and Employment

The concept of demand (ex-ante) and effective (ex-post) demand. Aggregate demand and its components, propensity to consume and propensity to save (average and marginal), equilibrium output; investment multiplier (it’s meaning and mechanism with the help of a diagram).

Simple numerical based on the above. Meaning full employment. Problems of excess demand and deficient demand; measures to correct them

Money and Banking

Section – 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).

Section – 2

Banks: functions of the commercial bank; high-powered money, credit creation by commercial banks; Central Bank: functions.

Basic understanding of the functions of commercial banks, and the credit creation process with limitations.

The regulatory role of the Central Bank, its functions, and the way it controls the flow of credit need 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.

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).

Public Finance

Section – 1

Fiscal Policy: meaning and instruments of fiscal policy.

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

Section – 2

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.

National Income

Section – 1

Circular flow of Income.

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

Section – 2

Concepts and definition of NY, GNP, GDP, NNP, private income, personal income, personal disposable income, National Disposable Income, and per capita income; the 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, and GDP as an indicator of economic welfare.

Section – 3

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

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

Paper-II (Project Work) – 20 Marks

Candidates will be expected to have completed two projects from any topic covered in Theory.

The project work will be assessed by the teacher and a Visiting Examiner appointed locally and approved by the Council.

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. Analyze 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 the 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 (labor 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/automobile / Electronic and Tele-communication, etc. in India for the past ten years.

NOTE: No question paper for Project Work will be set by the Council.

##### Anurag Pathak

Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his youtube channel and can download the Android & ios app for free lectures.

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