ICSE Board Economics Syllabus for Class 11

ICSE Board Syllabus for Class 11 Economics


There will be one paper of 3 hours duration of 100 marks divided into 2 parts.

Part 1 (30 marks) will consist of compulsory short answer questions testing knowledge, application and skills relating to elementary/ fundamental aspects of the entire syllabus.
Part 2 (70 marks) will consist of eight questions out of which the candidate will be required to answer five questions. Each question in this Part shall carry 14 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.

1. Understanding Economics

i) Definition of Economics: Adam Smith, Alfred Marshall, Lionel Robbins, Samuelson. Basic understanding of economics and economic phenomena to be explained especially in the context of the concept of scarcity and allocation of resources. Students may be introduced to the main points on which the various definitions of economics could be analyzed. Features of definitions and two- three criticisms.

(ii) Basic concepts: utility, price, value, wealth, welfare, money, market, capital, investment, income, production,
consumption, saving. A conceptual understanding of the terms: utility – types and features, total utility,marginal utility and diminishing marginal utility; price – definition and general rise and fall in price; value – real vs nominal value; wealth – explanation of the term, classification (personal and social); welfare – economic welfare, social welfare and relation between wealth and welfare; money – barter economy vs money economy; market – meaning and size; capital – meaning; investment – meaning, investment as a process of capital formation; income – meaning, factor incomes; production – meaning; consumption – meaning; saving – meaning and saving vs savings. The above terms to be explained with the help of relevant examples

(iii) Basic problems of an economy: what to produce; how to produce; for whom to produce; efficient use of resources; economic growth and development. The basic problem of scarcity and choice must be emphasized. As this problem is universal in character, i.e. faced by all economies, irrespective of the economic system they follow, it must be explained using the concept of Production Possibility Curve. The three problems - what to produce, how to produce and for whom to produce - must be highlighted. The role of technology and a shift
in the Production Possibility Curve must be explained. A brief explanation of the term ‘economic growth’, ‘economic development’ and distinction between the two is required.
(iv) Types of economies: developed, under developed and developing; Economic systems: capitalism, socialism and mixed economy; mechanism used to solve the basic problems faced by each economy. Characteristics of developed and developing economies; Development experience of India: a comparison with neighbouring countries (Pakistan and China) in terms of growth, population and sectoral development (introducing regional and global economic grouping such as SAARC, European Union, ASEA7, G-8, G-20 - basic knowledge); different types of economic systems; definition, features, merits and demerits of capitalism, socialism and mixed economic system; mechanisms used to solve the basic problems under each economic system to be explained with the help of case studies. The role of government along with the price mechanism to be emphasized.

2. Indian Economy - Challenges

(i) Population: Theories of Population (Malthusian and Optimum); Theory of Demographic Transition; population growth over the years; census of 2001; age, sex composition; density of population and occupational distribution; the current National Policy on Population. Overpopulation and under population - merits and demerits. AA brief introduction of features of Malthusian, Optimum and Demographic theories of population. Conceptual understanding of the following: changes in age, sex ratio, density of population and the occupational distribution (emphasis to be laid on trends and not on statistical data). Effects of population growth on the economy. The manner in which demographic profile of Indian population is changing, must be explained. Main features of the latest 7ational Policy on Population of the Government of India.

(ii) Problem of unemployment: meaning, types; causes and measures to remove unemployment; government measures to remove unemployment post 1991. Basic knowledge of the concept of full employment. The nature of unemployment problem in India and types of unemployment - seasonal, involuntary, voluntary, disguised, cyclical, structural, open, frictional and under
employment to be explained. An analysis of the causes of the problem and main points of the recent employment policy of the Indian government to be analyzed with the help of statistical information on the subject.

(iii) Poverty: meaning of poverty line; vicious circle of poverty; causes of poverty; attempted solutions including governmental measures. Poverty should be defined on the basis of calorie intake (and not in monetary terms). The meaning of poverty - absolute poverty and relative poverty to be explained. The concept of poverty line with reference to calorie intake, the vicious circle of poverty, both on demand side as well as on supply side with solutions for breaking the vicious circle of poverty. The various programmes (post 1991) and the latest policy of the government to solve this problem.

(iv) Inequalities in income distribution; causes; consequences and measures to reduce inequalities. Meaning of inequality in income distribution - rural-rural, urban-urban and rural-urban (emphasis to be laid on trends and not on statistical data). A basic understanding of the problem of inequalities in income distribution to be emphasized. A brief analysis of the causes andconsequences. The various programmes (post 1991) and the latest policy of the government to solve this problem.

(v) Indian Agriculture: role of agriculture in Indian Economy - an overview; Indian agricultural policy; importance of land reforms, agricultural inputs and Green Revolution, modern agricultural practices; sources of agricultural finance: institutional vs. noninstitutional; food security; public distribution system in India. An overview of the role of agriculture in the Indian economy with respect to its contribution to national income, industry and employment. Why land reform is needed to overcome the problem of sub-division and fragmentation of agricultural holdings which have been the cause of low productivity of Indian agriculture (including the problem created due to absentee landlordism). The important role played by the Green Revolution in solving food problem. Special focus on modern agricultural practices, for e.g. biotechnology, agricultural research and agricultural marketing The sources of agricultural finance - institutional.vs. non-institutional. The role of Public Distribution System in providing food security in India. The various programmes (post 1991) and the latest policy of the government.

(vi) Industrial sector: role and performance of public sector in Indian economy; problems of public sector enterprises; the issue of privatization in the light of liberalization. The role of industrial sector in India’s development to be explained. The rationale behind public sector enterprises in India. Various problems being faced by these enterprises (emphasis to be laid on trends and not on statistical data). The question of privatization - its pros and cons, disinvestment of PSU to be explained. The Industrial Policy of 1991, 7ew Economic Policy and the latest Industrial Policy of the government.

(vii) Capital formation in India: why the rate of savings and capital formation is low in India. Human capital formation. Capital formation - meaning, process, causes of low rate of savings and capital formation, remedies. A basic understanding of these issues to be given with the help of latest statistical data. Human capital formation: how people become resource; role of human capital in economic development: growth of education sector in India.

3. Money and Banking

(i) Money: meaning, functions of money. Meaning, evolution of money, kinds of money, functions of money (primary,
secondary and contingent) to be explained.

(ii)Banks: functions of commercial bank; reserve money, credit creation by commercial banks; Central Bank: need, functions. Basic understanding of the functions of commercial banks, credit creation process. The regulatory role of the Central Bank, its functions and the way it controls the flow of credit needs to be explained. A brief mention may be made of CRR, SLR, Bank Rate policy and Open Market Operations.

(iii) Inflation: definition, types, causes: cost-push, demand-pull; effects of inflation on different groups of society; fiscal, monetary and other measures to control inflation. Definition, types of inflation. The factors on the demand side - demand pull inflation and on the supply side - the cost push inflation, must be explained. The effects of inflation on salaried classes, borrowers, lenders, hoarding, inventory, etc. to be explained. A brief explanation of the measures to check inflation – fiscal, monetary and other measures. 

4. Statistics

(i) Statistics: definition, scope and limitations of statistics. Statistics: definition, scope and limitations of statistics. Special emphasis to be laid on importance of statistics in economics.

(ii) Measures of Central Value: average defined; type of averages: arithmetic mean; simple and weighted; median and mode; ungrouped and grouped data; numericals, relationship between mean, median and mode. Measures of Central Value: average defined; type of averages: arithmetic mean; simple and weighted; median and mode; ungrouped and grouped data. 7umericals only on mean, median and mode for both ungrouped and grouped data. Relationship between mean, median and mode – the nature of the frequency distribution – symmetrical, positively skewed and negatively skewed.

(iii)Measures of dispersion: definition, methods of studying variation - range; standard deviation; the mean or average deviation; coefficient of variation; the Lorenz curve. 7umericals on measures of dispersion required

(iv) Correlation: introduction, scatter diagram; Karl Pearson’s coefficient of correlation; Spearman’s coefficient of correlation. Significance of correlation to be explained along with types and degrees. 7umericals on coefficient of correlation required.

(v) Index numbers: simple and weighted - meaning, types and purpose. Problems involved in constructing a Price Index Number. What does an Index number show, measure or indicate (like a Price Index 7umber). Difference between simple and weighted – Price weighted or quantity weighted. Problems involved in constructing Price Index 7umber – the choice of the base year, the number of commodities to be included (coverage), choice of prices and the method to be used.

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