ISC 2025 Economics Improvement Examination Question Paper for Class 12

About this paper

This is the ISC Class 12 Economics paper from the 2025 Improvement Examination, code 1225-856-IE. It carries 80 marks and runs for three hours, with fifteen minutes extra for reading only. All thirteen questions are compulsory. Section A has sixteen one-mark parts. Section B has eight questions of four marks each, with an internal choice in Questions 5 and 7. Section C has four questions of eight marks each, with an internal choice in Question 12. Question 13 is a passage on organised and unorganised hotels in India. Other questions use a shift in the demand for coffee, the consumption function C = 500 + 0.7Y, and a case on whether a game-show prize, a second-hand car and a broker’s commission enter national income. This copy has the questions only.

Exam

ISC Class 12

Subject

Economics

Year

2025

Paper code

1225-856-IE

Maximum marks

80

Time allowed

3 hours + 15 min reading

Questions

13

Pages

11

Answers included

No, questions only

Paper pattern

• Section A

  16 marks

  Question 1: sixteen very short parts, one mark each

• Section B

  32 marks

  Questions 2–9, four marks each; internal choice in Questions 5 and 7

• Section C

  32 marks

  Questions 10–13, eight marks each; internal choice in Question 12. Question 13 is a passage on the hotel industry

Topics covered

• Indifference curves
• Law of variable proportions
• Elasticity of demand
• Costs and firm equilibrium
• Oligopoly and monopoly
• Money supply and credit creation
• Public debt and taxation
• Balance of payments
• National income
• Consumption function and the multiplier
• Monopolistic competition

Questions from this paper

1. What is meant by high-powered money?
2. The price of a commodity falls by ₹5 per unit and demand rises from 100 units to 150 units. If the price elasticity of demand is 1.5, calculate the original price.
3. A linear consumption function is C = 500 + 0.7Y. Identify autonomous consumption and the MPC, and hence find the MPS.
4. During Dussehra the price of bananas rose by 15%, but a household’s expenditure on bananas stayed the same. What is the price elasticity of demand? Draw the curve.
5. Sukhjeet won ₹6 lakh 40 thousand in a game show. Is this part of national income? Give a reason.
6. Which market form does the passage on organised hotel chains in India refer to? Give a reason.