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Syllabus

Economics ISC (Commerce) Class 12 CISCE Syllabus 2026-27

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CISCE Class 12 Economics Syllabus - Free PDF Download

CISCE Syllabus 2026-27 Class 12: The CISCE Class 12 Economics Syllabus for the examination year 2026-27 has been released by the Council for the Indian School Certificate Examinations, CISCE. The board will hold the final examination at the end of the year following the annual assessment scheme, which has led to the release of the syllabus. The 2026-27 CISCE Class 12 Economics Board Exam will entirely be based on the most recent syllabus. Therefore, students must thoroughly understand the new CISCE syllabus to prepare for their annual exam properly.

The detailed CISCE Class 12 Economics Syllabus for 2026-27 is below.

Academic year:

CISCE Class 12 Economics Revised Syllabus

CISCE Class 12 Economics Course Structure 2026-27 With Marking Scheme

#Unit/TopicMarksMarks
with
options
1  Microeconomic Theory40 
1  Demand  
2  Elasticity of Demand  
3  Supply  
4  Market Mechanism  
5  Concepts of Production  
6  Cost and Revenue  
7  Main Market Forms and Equilibrium of a Firm  
🞽Macroeconomics--
2  Theory of Income and Employment8 
3  Money and Banking8 
4  Balance of Payments and Exchange Rate6 
5  Public Finance6 
6  National Income12 
 Total - -
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Syllabus

1: Microeconomic Theory [Revision]

CISCE Class 12 Economics Syllabus
1 Demand [Revision]
2 Elasticity of Demand [Revision]
3 Supply [Revision]
4 Market Mechanism [Revision]
5 Concepts of Production [Revision]
6 Cost and Revenue [Revision]
7 Main Market Forms and Equilibrium of a Firm [Revision]
  • Concept of Market  
    • Introduction
    • Definition: Market
    • Essential Market Conditions
    • Types of definition of market
    • Features of a market
    • Real-Life Application
    • Key Points: Concept of Market
  • Market Structure  
    • Meaning of Market Structure
    • Main types of market structures
    • Characteristics of Market Structure
    • Key Points: Market Structure
  • Factors Determining Market Forms  
  • Perfect Competition  
  • Features of Perfect Competition  
  • Pure and Perfect Competition  
  • Monopoly  
  • Features of Monopoly  
  • Monopolistic Competition  
  • Features of Monopolistic Competition  
  • Oligopoly  
  • Features of Oligopoly  
  • Monopsony  
  • Features of Monopsony  
  • Duopoly  
  • Characteristics of Duopoly  
  • Bilateral Monopoly  
  • Other Forms of Market  
    • Based on Time Frame
    • Based on Area
    • Based on Function
    • Based on Quantity
    • Based on Legality
    • Based on Control
    • Based on Transactions
    • Real-Life Application
    • Key Points: Other Forms of Market
  • Factors Determining Market / Extent of Market  
    • Extent of Market
    • Factors That Decide Market Size
    • Real-Life Application
    • Key Points: Factors Determining Market / Extent of Market
  • Demand Curves of Firms under Different Market Forms  
    • Meaning of demand curve of a firm
    • Perfect competition
    • Monopoly
    • Monopolistic competition
    • Diagram explanation
    • Key Points: Demand Curves of Firms under Different Market Forms
  • Comparison between different forms of market  
    • Comparison Table
    • Real-Life Application
  • Difference Between Imperfect Competition and Monopolistic Competition  
  • Firm : An Economic Entity  
    • Introduction: Economic activity
    • Meaning of a Firm
    • Factors of production and factor services
    • Main functions of a firm
    • Size of firms: Small and large
    • Types of firms (by ownership)
    • Real-Life Application
    • Key Points: Firm : An Economic Entity
  • Profit Maximisation Objective  
    • Introduction: Profit-maximisation objective
    • Definition of Profit
    • Normal profit and pure (economic) profit
    • Role of profit in resource allocation
    • Equilibrium of the firm and profit maximisation rules
    • Economist note: Maurice Allais
    • Real-Life Application
    • Key Points: Profit Maximisation Objective
  • The Definition of Profits  
  • Rules for Profit-Maximisation  
  • Producer's (Firm's) Equilibrium: Total Revenue and Total Cost Approach  
    • TR-TC Approach
    • Behaviour of TR and TC
    • Loss region, break‑even points and profit region
    • Maximum profit and equilibrium output
    • Total Profit (TP) curve and equilibrium
    • Limitations of TR–TC method
    • Real-Life Application
    • Key Points: Producer's (Firm's) Equilibrium: Total Revenue and Total Cost Approach
  • Producer's (Firm's) Equilibrium: Marginal Revenue and Marginal Cost Approach  
    • Producer’s (Firm’s) Equilibrium – MR–MC Approach
    • Rule 1 – Short-run decision
    • Rule 2 – First-order condition: MR = MC
    • Rule 3 – Second-order condition: MC cuts MR from below
    • Real-Life Application
    • Key Points: Producer's (Firm's) Equilibrium: Marginal Revenue and Marginal Cost Approach
  • Short-run Equilibrium  
    • Short-run equilibrium of the industry
    • Demand curve of an individual firm
    • Short-run equilibrium of the firm
    • Three short-run positions of the firm
    • Shut-down and break-even points
    • Key Points: Determination of Short Run Equilibrium of a Firm
  • Long-run Equilibrium  
    • Long run
    • Long-run equilibrium of a firm under perfect competition
    • Conditions for long-run equilibrium of a firm
    • Diagram: Long-run equilibrium of a firm
    • Adjustment process: from super-normal profit or loss to normal profit
    • Long-run equilibrium of the industry
    • Real-Life Application
    • Key Points: Determination of Long Run Equilibrium of a Firm
  • Firm is a Price Taker, Not a Price Maker  
    • Meaning of price taker and price maker
    • Price-Taking Behaviour of a Perfectly Competitive Firm
    • Demand Curve of a Perfectly Competitive Firm Is Perfectly Elastic
    • Price taker vs Price maker
    • Real-Life Application
    • Key Points: Firm is a Price Taker, Not a Price Maker
  • Equilibrium of Industry  
    • Meaning of industry and firm
    • Meaning of equilibrium of industry
    • Definition: Equilibrium of Industry
    • Conditions of industry equilibrium
    • Short-run equilibrium of industry
    • Definition: Long Run Equilibrium of Industry
    • Long-run equilibrium of industry
    • Key Points: Equilibrium of Industry
  • Difference Between Firm and Industry's Equilibrium  
    • Comparison table: firm vs industry equilibrium
  • Meaning of a Producer  
  • Producer's Equilibrium under Perfect Competition  
    • Introduction
    • Numerical illustration of TVC and MC
    • Diagram: TVC as area under MC
    • U-Shaped Nature of the Marginal Cost Curve
    • Perfect competition and revenue curves
    • Conditions of producer’s equilibrium
    • Key Points: Producer's Equilibrium under Perfect Competition
  • Determination of Price and Equilibrium Under Monopoly  
    • Meaning of monopoly and objective
    • Price and output behaviour of a monopolist
    • Profit maximisation and equilibrium under monopoly
    • Two approaches to determine equilibrium price and output
    • Real-Life Application
    • Key Points: Determination of Price and Equilibrium Under Monopoly
  • Monopoly Equilibrium and Laws of Costs  
    • Effect of laws of costs on monopoly equilibrium
    • Increasing costs (Law of Diminishing Returns)
    • Diminishing costs (Law of Increasing Returns)
    • Constant costs
    • Pricing Misconceptions
    • Merits of Monopoly
    • Demerits of Monopoly
    • Key Points: Monopoly Equilibrium and Laws of Costs
  • Price Discrimination or Discriminating Monopoly  
    • Definitions: Price Discrimination
    • Types of Price Discrimination
    • Conditions for Price Discrimination
    • Degrees of Price Discrimination
    • Key Points: Price Discrimination or Discriminating Monopoly
  • Price and Output Discrimination Under Discriminating Monopoly  
  • Measures of Monopoly Power  
    • Formula
    • Concentration Ratio
    • Profit-Rate (J.S. Bains)
    • Lerner’s Index (Classic Measure)
  • Nature of Demand and Cost Curves  
  • Equilibrium Price and Output under Monopolistic Competition  
    • Short-Run Equilibrium (Individual Firm)
    • Long-Run Equilibrium (Individual & Group)
    • Key Points: Equilibrium Price and Output under Monopolistic Competition
  • Group Equilibrium in Monopolistic Competition  
    • Understanding Monopolistic Competition
    • Assumptions for Group Equilibrium
    • Pathway to Equilibrium
    • Key Points: Group Equilibrium in Monopolistic Competition
  • Product Differentiation  
    • Meaning of Product Differentiation
    • Peculiarities
    • Demand Curve Explained
    • Equilibrium with Differentiation
    • Key Points: Product Differentiation
  • Selling Costs  
    • Definitions: Selling Costs
    • Definition: Production Cost
    • Selling Cost Basics
    • Assumptions
    • Nature
    • Production vs. Selling Costs
    • Average Selling Cost (ASC) Curve
    • Equilibrium with Selling Costs
    • Key Points: Selling Costs
  • Equilibrium with Selling Costs  
  • Price and Output Under Oligopoly Indeterminate  
  • Price and Output Determination under Oligopoly  
    • Independent pricing in oligopoly
    • Collusive pricing
    • Price leadership
    • Real-Life Application
    • Key Points: Price and Output Determination under Oligopoly
  • Price Rigidity-Sweezy's Kinky Demand Curve Model or Equilibrium under Independent Action  
    • Sweezy's Kinked Demand Curve
    • Core Mechanism
    • Assumptions of the Linked Demand Curve Hypothesis
    • Cost Shifts
    • Demand Shifts
    • Reasons for Stability
    • Key Points: Price Rigidity-Sweezy's Kinky Demand Curve Model or Equilibrium under Independent Action
  • Reasons for Price Stability  
  • Cournot's Model  
    • Introduction to Cournot Duopoly Model
    • Formula: General Oligopoly
    • Assumptions
    • Diagrammatic Representation
    • Real-Life Application
    • Key Points: Cournot's Model
  • Collusive Oligopoly  
    • Introduction to Collusive Oligopoly
    • Reasons for Collusion Among Firms
    • Escape: Non-Price Competition
    • Formation Of Cartels
    • Key Points: Collusive Oligopoly
  • Mergers  
    • Introduction to Mergers
    • Types of Mergers
    • Real-Life Application
    • Key Points: Mergers

🞽 Macroeconomics

2: Theory of Income and Employment [Revision]

CISCE Class 12 Economics Syllabus
  • Introduction to Theory of Income and Employment  
  • Basic Model of Income Determination  
    • Objectives of  Income Determination
    • JM Keynes
    • Keynesian Model
    • Steps
    • Real-Life Application
    • Key Points: Basic Model of Income Determination
  • Aggregate Demand and Its Components  
  • Desired (Ex Ante) and Effective Demand (Ex Post)  
  • Propensity to Consume or Consumption Function  
    • Consumption function
    • Definitions: Consumption function
    • Formula: Average Propensity to Consume
    • Formula: Marginal Propensity to Consume
    • Graphical meaning: APC
    • Graphical meaning: MPC
    • Properties of Keynesian consumption function
    • Linear consumption function
    • Characteristics of Propensity to Consume
    • Tabular Representation of Propensity to Consume
  • Propensity to Save - Saving Function  
    • Saving function
    • Formula: Average propensity to save
    • Formula: Marginal propensity to save
    • Relationships between Consumption and Saving Functions
    • Deriving Saving Function Graphically
  • Relationship Between Consumption and Saving Functions  
  • Derivation of Saving Function  
  • Investment Expenditure  
    • Introduction to Investment Expenditure
    • Private and Public Investment
    • Induced and Autonomous Investment
    • Key Points: Investment Expenditure
  • Private and Public Investment  
  • Induced and Autonomous Investment  
  • Determination of Equilibrium Income and Output  
    • Introduction
    • Key Components
    • Diagrammatic Explanation
    • Disequilibrium Adjustments
    • Two Approaches Summary
    • Key Points: Determination of Equilibrium Income and Output
  • Concept of Aggregate Demand and Aggregate Supply  
  • Saving-investment Approach  
    • Introduction
    • Key Equations
    • Disequilibrium Effects
    • Adjustment Process
    • Key Points: Saving-Investment Approach
  • Investment Multiplier  
    • Definition: Investment Multiplier
    • Formula: Investment Multiplier
  • Investment Multiplier Defined  
  • Determination of Equilibrium Income in the Short Run  
  • Graphic Presentation of Multiplier  
  • Derivation of Multiplier Formula  
  • Solved Numerical Problems on Propensity to Consume and Save, Equilibrium Income and Multiplier  
  • Meaning of Full Employment and Voluntary Unemployment  
  • The Concept of Full Employment  
    • Introduction of Full Employment
    • Key Concept
    • Two Economic Perspectives
    • Real-Life Application
    • Key Points: The Concept of Full Employment
  • Voluntary and Involuntary Unemployment  
  • Excess Demand  
    • Concept of Excess Demand
    • Causes of Excess Demand
    • Measures to Fix Excess Demand
    • Key Points: Excess Demand
  • Measures to Correct the Excess Demand  
    • Availability of credit
    • Change in government spending
  • Deficient Demand  
    • Concept of Deficient Demand
    • Concept of Deflationary Gap
    • Two Key Conditions
    • Causes
    • Effects
    • Measures to Correct Deficient Demand
    • Key Points: Deficient Demand
  • Measures to Correct Deficient Demand  
  • Deficient and Excess Demand and Business Cycle  
  • Aggregate Demand in a Three - Sector Economy  
  • Features of the Consumption Function  
  • Shifting of the Consumption Function  
  • Importance of the Consumption Function  
  • Gross Investment and Net Investment  
  • Paradox of Thrift  
  • Variables  
  • Partial and General Equilibrium  
    • Definition: Partial Equilibrium
    • Meaning of Partial Equilibrium
    • Definition: General Equilibrium
    • Meaning of General Equilibrium
    • Approaches to general equilibrium analysis
    • Real-Life Application
    • Key Points: Partial and General Equilibrium
  • Static Analysis  
    • Concept of Static Analysis
    • Definition: Static Analysis
    • Diagram – Static equilibrium
    • Comparative Static Analysis
    • Diagram – New equilibrium after demand increase
    • Real-Life Application
    • Key Points: Static Analysis
  • Comparative Static Analysis  
  • Dynamic Analysis  
    • Definitions: Dynamic Analysis
    • Meaning of Dynamic Analysis
    • Dynamic analysis with price determination
    • Features of Dynamic Economics
    • Key Points: Dynamic Analysis
  • Difference between Static and Dynamic Analysis  
    • Key Points: Difference between Static and Dynamic Analysis
  • Psychological Law of Propensity to Consume  
    • Introduction
    • Definition: Psychological Law of Propensity to Consume
    • Assumptions
    • Propositions
    • Tabular illustration
    • Diagrammatic explanation
    • Implications
    • Key Points: Psychological Law of Propensity to Consume
  • Measures to Raise Propensity to Consume  
    • Measures
    • Key Points: Measures to Raise Propensity to Consume
  • Importance of Investment  
    • Introduction
    • Basis of Income, Output & Employment
    • Basis of Capital Formation
    • Key Points: Importance of Investment
  • Static Multiplier  
    • Introduction to Static Multiplier
    • Forward Working of the Multiplier
    • Reverse (Backward) Working of the Multiplier
    • Saving-Investment Equality Approach
    • Key Points: Static Multiplier
  • Dynamic Concept of Multiplier  
    • Introduction
    • Assumptions of the Dynamic Multiplier
    • Mathematical Derivation
    • Key Points: Dynamic Concept of Multiplier
  • Limitations of Multiplier  
    • Tabular Representation
    • Key Points: Limitations of Multiplier
  • Leakages of Multipler  
  • Importance of Multiplier  
    • Introduction
    • Importance
  • Types of Multiplier  
    • Types
    • Formula: Employment Multiplier
    • Employment Multiplier
    • Formula: Foreign Trade Multiplier
    • Foreign Trade Multiplier
    • Formula: Price Multiplier
    • Price Multiplier
    • Consumption Multiplier
    • Key Points: Types of Multiplier
  • Balanced-Budget Multiplier  
    • Introduction
    • The Balanced Budget Theorem
    • Step-By-Step Derivation
    • Key Points: Balanced-Budget Multiplier
  • Unemployment Associated with Full Employment  
    • Definition: Frictional Unemployment
    • Concept of Frictional Unemployment
    • Definition: Structural Unemployment
    • Concept of Structural Unemployment
    • Concept of Seasonal Unemployment
    • Concept of Technical Unemployment
  • Inflationary Gap  
    • Introduction
    • Definition: Inflationary Gap
    • Numerical Example — Step by Step
    • Diagrammatic Representation
    • Effects of Excess Demand
    • Key Points: Inflationary Gap
  • Foreign Trade Policy  
    • Introduction
    • Key Terms
    • Deficient Demand and Export Surplus
    • Excess Demand and Import Surplus
    • Ways India Covers Excess Imports
    • Key Points: Foreign Trade Policy

3: Money and Banking [Revision]

CISCE Class 12 Economics Syllabus
  • Introduction to Money and Inflation  
  • Concept of Money  
  • Features of Money  
  • Barter system  
    • Introduction
    • Definition: Barter System
    • Difficulties of the Barter System
    • Real-Life Application
    • Key Points: Barter System
  • Difficulties of Barter System of Exchange  
  • Evolution of Money  
    • Introduction
    • Flowchart
  • Qualities of Good Money  
  • Modern Forms of Money  
    • Introduction
    • Coins
    • Currency Notes
    • Deposit Money (Bank Money)
    • Legal Tender Money
    • Credit Cards
    • Similarities Between Coins and Currency Notes
    • Differences Between Coins and Currency Notes
    • Key Points: Modern Form of Money
  • Functions of Money  
    • Primary Functions  
    • Secondary Functions  
    • Contingent Functions  
  • Importance of Money  
    • Flowchart: Importance
    • Key Points: Importance of Money
  • Supply of Money  
    • Introduction
    • Components of Money Supply
    • Narrow vs Broad Definition of Money
    • Measures of Money Supply in India
    • High-powered Money
    • New Measures (V.K. Reddy Committee)
    • Key Points: Supply of Money
  • Measures of Money Supply  
  • Inflation  
    • Introduction
    • Demand-pull Inflation
    • Cost-push Inflation
    • Key Points: Inflation
  • Types of Inflation  
    • Meaning, Causes, effect, and Differences of:
    1. Cost-push inflation
    2. Demand-pull inflation
  • Introduction to Banking System  
  • Types of Bank  
    • Table: Types of Bank
    • Key Points: Types of Bank
  • Functions of Commercial Bank  
    • Definition: Banking
    • Function 1: Acceptance of Deposits
    • Function 2: Advancing Loans and Advances
    • Function 3: Cheque Facility and Transfer of Funds
    • Function 4: Agency Functions
    • Function 5: General Utility Services
    • Function 6: Credit Creation
    • Function 7: Transfer of Funds
    • Function 8: Financing Internal & External Trade
    • Function 9: Foreign Exchange (Buy/Sell Dollars)
    • Function 10: Miscellaneous Functions
    • Key Points: Banking > Functions of Commercial Bank
  • Central Bank  
    • Introduction
    • Definitions: Central Bank
    • Functions of the Central Bank
    • Evolution of Central Banking
    • Need for a Central Bank
    • Importance in Developing Economies
    • Key Points: Central Bank
  • Functions of Central Bank  
  • Methods of Credit Control by the Central Bank  
    • Quantitative Methods
    • Qualitative Methods
    • Key Points: Methods of Credit Control
  • Quantitative Methods of Credit Control by the Central Bank  
    • Introduction
    • Bank Rate
    • Repo Rate & Reverse Repo Rate
    • Monetary Policy Committee
    • Open Market Operations
    • Cash Ratio Reserve
    • Statutory Liquidity Ratio
    • Key Points: Quantitative Methods
  • Qualitative Methods of Credit Control by the Central Bank  
  • Difference Between the Central Bank and the Commercial Banks  
  • Role of Banks in the Economy  
  • Indian Monetary System  
  • Constitutents of Money Supply  
  • Reserve Bank of India's Approach of Money Supply  
  • Factors Affecting Money Supply  
  • Structure of Money Market in India > Organized Sector  
    • Commercial Banks  
      • Introduction
      • Definitions: Commercial Bank
      • Historical Background of Banking in India
      • Reasons for Bank Nationalisation
      • Classification of Commercial Banks in India < Public Sector Banks
      • Classification of Commercial Banks in India < State Bank of India
      • Classification of Commercial Banks in India < Regional Rural Banks
      • Classification of Commercial Banks in India < Private Sector Banks
      • Classification of Commercial Banks in India < Foreign Banks
      • Key Points: Commercial Banks
  • Process of Credit Creation by Commercial Banking System  
  • Factors Affecting Credit Creation  
  • High Powered Money  
  • Classification or Structure of Commercial Banks in India  
  • Components of Money Supply  
  • Evolution of Central Bank  
  • Need for a Central Bank  
  • Importance of Central Bank  

4: Balance of Payments and Exchange Rate [Revision]

CISCE Class 12 Economics Syllabus
  • Concept of Balance of Payments  
  • International Linkages  
  • Open Economy and Its Linkages  
  • Balance Payment  
  • Definitions of Balance Payments  
  • Meaning of Balance of Payments  
  • Balance of Trade  
  • Balance of Invisible Trade  
  • Components of Balance of Payments  
    • Introduction
    • Components or Items of Current Account
    • Components or Items of Capital Account
    • Table Representation
  • Categories of Balance of Payments  
    • Balance of Trade
    • Balance of Current Account
    • Balance of Capital Account
    • Balance of Payments
  • Balance of Trade vs Current Account Balance  
  • Structure of Balance of Payments  
  • Methods to Measure Balance of Payments  
  • Capital Account Balance  
  • Autonomous and Accommodating Items  
  • Balance of Payments Disequilibrium  
    • Introduction
    • Causes of Disequilibrium in Balance of Payments
  • Terms of Trade - Errors and Omissions Excepted (E&OE)  
  • Causes Behind Unfavourable Bop  
  • Remedies for Unfavourable Bop  
  • Monetary and Fiscal Policies to Correct Disequilibrium in the BOP Account  
  • Fiscal policies  
  • Foreign Exchange Rate  
  • Foreign Exchange  
  • Exchange Rate System  
  • Demand for Foreign Exchange  
  • Supply of Foreign Exchange  
  • Determination of Equilibrium Exchange Rate  
  • Shifts of the Demand Curve  
  • Shifts of the Supply Curve  
  • Advantages of Fixed Exchange Rate  
  • Disadvantages of Fixed Exchange Rate  
  • Advantages of Flexible Exchange Rate  
  • Disadvantages of Flexible Exchange Rate  
  • Types of Exchange Rate  
  • Factors Responsible for Exchange Rate Fluctuation  
  • Some Related Concepts of Exchange Rate  
  • Difference Between Devaluation and Depreciation  

5: Public Finance [Revision]

CISCE Class 12 Economics Syllabus

6: National Income [Revision]

CISCE Class 12 Economics Syllabus

Textbook SolutionsVIEW ALL [4]

Question PapersVIEW ALL [8]

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