# ISC Class 12 Economics --- ## Module 1: Introduction to Economics - Meaning, scope, and importance of economics - Basic economic problems: scarcity and choice - Central problems of an economy: What, how, and for whom to produce --- ## Module 2: Microeconomic Theory - **Demand**: Definition, determinants, demand function, law of demand, demand curve, shifts vs. movements, exceptions - **Elasticity of demand**: Types (price, income, cross), measurement methods (percentage method with numericals), degrees of elasticity - **Supply**: Meaning, difference between stock and supply, determinants, law of supply, supply curve, elasticity of supply, exceptions - **Market mechanism**: Equilibrium and disequilibrium, price determination, effects of changes in demand and supply, price controls (ceiling, floor), rationing - **Theory of consumer behavior**: Marginal utility analysis, indifference curve analysis, consumer equilibrium, properties of indifference curves - **Production**: Concepts, production function (short run and long run), returns to a factor, returns to scale, law of variable proportions, total/average/marginal products - **Cost and Revenue**: Types of costs (fixed, variable, total, average, marginal), cost curves, revenue concepts, relation between AR, MR, and TR - **Market forms**: Perfect competition, monopoly, monopolistic competition, oligopoly – features and price determination --- ## Module 3: Theory of Income and Employment (Macroeconomics) - **Basic concepts of national income**: GDP, GNP, NDP, NNP (at market price and factor cost), per capita income, real and nominal GDP - **Methods of measuring national income**: Product, income, expenditure methods (with numericals), precautions and difficulties - **Circular flow of income** (two, three, four sector models), leakages and injections - **Determination of income and employment**: Two-sector model, aggregate demand and supply, consumption and saving functions, investment multiplier, equilibrium output - **Problems of excess and deficient demand**; corrective measures --- ## Module 4: Money and Banking - **Money**: Meaning, types, functions (primary, secondary, contingent) - **Money supply**: Definitions, determinants - **Commercial banks**: Functions, credit creation process - **Central bank**: Functions (bank of issue, banker’s bank, controller of credit, government’s bank), monetary policy tools (CRR, SLR, repo rate, open market operations) --- ## Module 5: Government Budget and the Economy - **Government budget**: Meaning, components, objectives - **Types of budgets**: Balanced, surplus, deficit - **Fiscal policy**: Instruments, impact on economy --- ## Module 6: Balance of Payments - **Balance of payments**: Meaning, structure (current account, capital account), disequilibrium and corrective measures --- ## Module 7: Indian Economic Development - **Development experience (1947–90)**: Overview of major policies - **Economic reforms since 1991**: Liberalization, privatization, globalization - **Current challenges**: Poverty, unemployment, human capital, infrastructure, sustainable development --- ## Module 8: Project Work - Selection of topic from the syllabus (e.g., impact of inflation, role of banks, poverty alleviation programs) - Research, data collection, analysis, and presentation - Project report submission and viva (as per ISC guidelines) ---