ISC Class 12 Economics Syllabus for Semester (1 & 2) 2024-25

Economics has become one of the most grown fields around the world in the coming years because of the rise of people’s interest in the stock market. Economics is a study in the field of social science. It is to understand and explain the various aspects related to production and distribution of goods, supply and demand of products, and the creation, consumption and transfer  of wealth. The origin of Economics as a subject can be traced back to Adam Smith, referred to as the Father of Modern Economics. 

Modern Economics is essentially broken down into two distinct types.

The study of Economics which focuses on understanding the behavior of an individual and the consumption that happens on an individual level is called Microeconomics. Microeconomists attempt to understand and scrutinize the changes that take place on a household and individual level, and their impact on the economic prosperity of a Nation as a whole. Consumer behavior is given the most importance in Microeconomics. Microeconomics is also considered as an important area of study and research to tackle the world problems of poverty and unemployment. Study of Microeconomics theory is the Syllabus for the First Semester exam of ISC Board Class 12 Economics.

The study of economics that focuses on understanding the behavior and performance of an economy as a whole is called Macroeconomics. It takes into account the total amount of goods and services produced within an economy, the level of unemployment in the country and the general behaviour of prices rate. Macroeconomics is an important aspect of world politics. Macroeconomists use various aggregates and markers to study the effect and changes that take place. Some of the aggregates include Gross Domestic Product (GDP),  Consumer Price Index (CPI) etc. Study of Macroeconomics forms an important part of the Second Semester exam of ISC Board Class 12 Economics.

Economic System refers to the system by which a country conducts its trade and business on domestic and international level. There are four important types of Economic Systems. They are -

1. Traditional Economic System: It is the most basic form of economic system where goods are sold and bought on a barter system.

2. Capitalism: As propounded by Adam Smith, it is characterized by an absence of governmental interference and regulation, existence of private enterprises, and price determination by the forces of supply and demand curve.

3. Socialism: It is the complete opposite of Capitalism. It is characterised by governmental intervention, public enterprises, and determination of prices is being state controlled. Five Year Plans are a commonly used monetary and fiscal policy in Socialist Economic System.

4. Mixed Economy: Mixed Economy refers to a system that is an amalgamation of Capitalism and Socialism System. It is Charaterised by the existence of both private and public enterprise, minimal government intervention, and both the government and private sector influenced supply and demand policies.

• GDP: Gross Domestic Product (GDP) refers to the market values of the finished goods and services produced within the geographical boundary of a country. It is an important indicator on the progress of an economy.

• GNP: Gross National Product (GNP) refers to the value of all finished goods and services produced by the citizen’s of a country, irrespective of the geographical location. 

• CPI: Consumer Price Index (CPI) examines the prices of consumer goods and services, such as food, clothing, transportation etc. It is used to measure cost of living and inflation.

• Poverty Line: Poverty Line is used to measure the level of an individual or family income. People belonging below a certain level are considered to be poor according to the Government and require monetary assistance.