ISC Economics

What is Economics?

Economics is the science that deals with the production, distribution, and consumption of a product and/or service. The subject contains qualitative as well as quantitative aspects. Hence, if a person wants to ace an exam in this subject, they need to study both qualitative as well as quantitative aspects of the subject.

Aim of the Subject-

The aim of the subject is fairly simple:

• The subject enables students to acquire knowledge and the concept of economics. Also, allow them to evolve their understanding of the facts, terms, trends, conventions, principles, problems, etc. in the Economics
• It aims to acquaint the students with the tools of analysis which they then can use in real-world scenarios.
• To allow the students to develop a proper and functional understanding of the important economic problems.
• To acquaint the students with the institution through which the production process is carried out.
• To develop an understanding of the roles of the institutions in the functioning of an economy.
• To enable candidates to compare their own thoughts on the structures of the economy with that of other areas of the world.

Important topics-

• Micro Economic Theory.
• National Income.
• International Trade.
• Public Finance.

Class-wise Topics-

1. Class XI (Paper One-)

Understanding Economics– the basic understanding of economics and its economic phenomena is to explain (especially in the context of) the concept of scarcity and the allocation of resources. Students who are to study this subject may be introduced to the main point on which the various definitions of economics could be analyzed. The subject consists of two parts; Macroeconomics and Microeconomics. The basic difference between the two is among their concepts; namely, utility, price, value, wealth, welfare, money, market, capital, investment, income, production, consumption, saving, business cycle, aggregate demand, and aggregate supply.

Indian Economic Development- 

• Per capita income and human development index.
• Planning and economic development in India.
• Structural Changes in the Indian Economy after liberalization
• Current challenges facing the Indian Economy.
• Economic growth and development.
• Sustainable Development.

Statistics

• Definition, scope, and limitations of statistics.
• Collection, organization, and presentation of data.
• Measures of Central Value: average defined; type of averages: arithmetic mean; simple and weighted; median and mode; ungrouped and grouped data; numerical, the relationship between mean, median, and mode.
• Measures of dispersion: definition, methods of studying variation – range; standard deviation; quartile deviation; the mean or average deviation; coefficient of variation.
• Correlation: introduction, scatter diagram; Karl Pearson’s coefficient of correlation; Spearman’s coefficient of correlation.

PAPER-II – PROJECT WORK – 20 Marks:

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

A list of suggested projects is given below:

• Study consumer awareness amongst households by designing a questionnaire and collecting of primary data.
• Prepare a report on productivity awareness among enterprises through the use of statistical data from statistical tables published in Newspapers / RBI Bulletin / Budget /Census reports / Economic surveys, etc.
• Make a study of two cooperative institutions (for example milk cooperatives, etc.) with a view to comparing the organizational and financial structure of the organizations, production capacity, and output, marketing strategies, sales, market share, etc.
• Study in detail the South Asian Association for Regional Cooperation (SAARC) and its impact on the Indian economy

Class XII (Paper One)-

Micro Economic Theory-

• 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.
• The elasticity of demand: meaning, types of elasticity of demand, measurement of elasticity of demand; factors affecting elasticity of demand.
• Supply: meaning; the difference between stock and supply; determinants of supply; Law of Supply; movement and shift of the supply curve; elasticity of supply.
• 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.

Theory of Income and Employment-

• Basic concepts and determination of Income and Employment.

Money and Banking.

• Money: meaning, functions of money, supply of money.
• Banks: functions of commercial banks; high powered money, credit creation commercial banks; Central Bank: functions.

Balance of Payment and Exchange Rate-

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

Public Finance-

• Fiscal Policy: meaning and instruments of fiscal policy.
• Government Budget: meaning, types, and components.

PAPER-II – PROJECT WORK – 20 Marks

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

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:

• Demographic features.
• Consumption Pattern – Expenditure on necessities, comforts, and luxuries.
• 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:

• Performance of the Public Sector and Private Sector.
• 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.

Exam Structure-

Class XI-

There will be two papers on the subject.

Paper I – Theory: 3 hours ……80 marks

Paper-II- Project Work ……20 marks

 

PAPER – I (THEORY) – 80 Marks

Part 1 (20 marks) will consist of compulsory short answer questions testing knowledge, application, and skills relating to elementary/fundamental aspects of the entire syllabus.

Part II (60 marks) will consist of eight questions out of which candidates will be required to answer five questions, each carrying 12 marks.

Note: The syllabus is intended to reflect a study of the theory of Economics with specific reference to the Indian Economy. Therefore, examples and specific references to the Indian Economy must be made wherever relevant.

Class XII-

There will be two papers on the subject.

• Paper I – Theory: 3 hours ……80 marks
• Paper-II- Project Work ……20 marks
• PAPER – I (THEORY) – 80 Marks
• Part 1 (20 marks) will consist of compulsory short answer questions testing knowledge, application, and skills relating to elementary/fundamental aspects of the entire syllabus.
• Part II (60 marks) will consist of eight questions out of which candidates will be required to answer five questions, each carrying 12 marks.

Note: The syllabus is intended to reflect a study of the theory of Economics with specific reference to the Indian Economy. Therefore, examples and specific references to the Indian Economy must be made wherever relevant.

Preparation Tips–

• A subject as vast as this is very difficult to be crammed into smaller portions. Therefore, it is recommended to the students attend lectures, take notes, and study activities to enhance their economics vocabulary by knowing the meanings, definitions, terminology, and theories of the subject. It will be beneficial to the students to participate actively in the in-class discussions about the subject and its theories.
• Students must prepare themselves for the topics that are going to be discussed in the class in advance. This will allow them to be familiar with the topic and will in turn help them to understand and also participate in the ongoing discussions in the classroom.
• Being a vast and somewhat theoretical subject, Economics can become troublesome for students to study for a long period of time. Therefore, it is recommended to the students study it in parts. After going through a topic or two, students must then move on to some other book to understand a different topic. This way, students will not feel too loaded with the subject.
• While solving questions, students must first read and understand what the question is about. They must figure out the specific problem that the question is asking to be solved. Discuss the possible answers and the data that is required to solve the question among their peers. (for example, what quantity should the firm produce), know how to find it (look for the intersection of MR and MC), and other factors needed for the outcome to be optimal.
• Students must understand all the necessary terms in order to familiarize themselves with all the possible topics that are to be asked in the examination.

How to Score Well?

• Make graphs wherever it is required.
• For the questions that have internal choices, students must carefully select the one that they are planning to attempt and then frame the skeleton of the answers that they are going to write in the examination.
• Students must prepare and follow a pattern. For example, in case they start with long answer questions, complete that section and only then move to a short or very short answer section.
• Students must highlight the important points in their answers. Also, they should write their answers in bullet points wherever possible as it is considered a neat and clear way to be read and understood by the checker.

Recommended Books–

1. Jain and Ohri for microeconomics and macroeconomics, priced at Rs 135, lay a good foundation in Economics.
2. S. Chand’s microeconomics and macroeconomics are hot favourites among students for their simplicity and illustrative exams.
3. CISCE Sample papers: You can download the papers from the official website. The sample papers provided by the CISCE are as close to the real exam as it gets.

Also Recommended: ISC Business Studies

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SOURCE: https://www.cisce.org/