ISC Class 12 Economics: chapter-wise study guide

All 16 chapters of ISC Class 12 Economics for the 2026-27 session. Each chapter page explains the ideas, gives tricks to remember them, shows where students lose marks, and links to practice.

16 chapters
21 topic pages

Start with the first chapter

Exam note: ISC Economics (856) has Paper I Theory (3 hours, 80 marks) set by CISCE on the Class XII syllabus below (Microeconomic Theory 40, Macroeconomics 40 marks), and Paper II Project Work (20 marks, two projects assessed by the teacher and a Visiting Examiner). Class XI is examined by the school. About half the 2027 paper tests Apply, Analyse, Evaluate and Create.

Microeconomic Theory

1
Demand
- Consumer's Equilibrium: Cardinal Utility Analysis
- Indifference Curves, Budget Line and Consumer's Equilibrium
2
Elasticity of Demand
- Measuring Elasticity of Demand: Percentage, Expenditure and Geometric Methods
3
Supply
- Elasticity of Supply: Degrees, Percentage and Geometric Methods
4
Market Mechanism
- Equilibrium Price and the Effects of Shifts in Demand and Supply
5
Concepts of Production
- Law of Variable Proportions: Three Stages of Returns to a Factor
6
Cost and Revenue
- Cost Concepts and Short-Run Cost Curves: TC, AC, MC and Their Relationships
- Revenue Concepts and Producer's Equilibrium: TR-TC and MR-MC Approaches
7
Main Market Forms and Equilibrium of a Firm
- Short-Run Equilibrium of a Perfectly Competitive Firm: Break-Even and Shut-Down Points

Macroeconomics

8
Theory of Income and Employment
9
Money
- Inflation: Meaning, Demand-Pull and Cost-Push
10
Commercial Banks and Central Bank
- Central Bank: Functions and Methods of Credit Control
- Credit Creation by Commercial Banks: Credit Multiplier and Limitations
11
Balance of Payments and Exchange Rate
- Balance of Payments Account and Exchange Rate Determination
12
Fiscal Policy
- Taxes, Public Expenditure and Public Debt in Fiscal Policy
13
Government Budget
- Budget Receipts, Expenditure and Deficits: Revenue, Fiscal and Primary
14
Circular Flow of Income
- Circular Flow of Income: Two, Three and Four Sector Models
15
National Income Concepts and Aggregates
- National Income Aggregates and Their Relationships: GDP, GNP, NDP, NNP and Disposable Income
16
Methods of Measuring National Income
- Measuring National Income: Value Added, Income and Expenditure Methods with Numericals

Syllabus source: CISCE ISC 2027 Economics (856) syllabus, CISCE ISC 2027 Economics specimen question paper and answer key