ICSE Class 10 Economics Syllabus For Semester (1 & 2) 2024-25

Land, labour, and capital are the resources used to produce goods and services, which is called the production possibility curve. Production possibility curve is a curve that shows different combinations of the quantities of the goods that can be produced by a society using a given amount of resources and available technology which is considered as a trade-off between the quantity of two goods that can be produced. Resources of labour are used to produce goods by using our hands and machines. Resources of land are used to produce goods by using land for agriculture, industry, or housing. Resources of capital are used to produce goods and services by using money to buy machines, tools, and buildings.

Market equilibrium is said when there is a balance between the demand for a product and the supply of that same product in the market. When the demand for a product is more than the available supply, the price of the product rises until it reaches a point where the quantity demanded is equal to the quantity supplied. This point is called market equilibrium. Equilibrium helps the buyer and seller to exchange goods at a price that is agreeable to both, and it is also known as an efficient market; and by buying and selling at this price, both the buyer and seller can maximise their utility.

Public goods can be written non-rivalrous and non-excludable, i.e., one person's consumption of a good does not reduce the availability of the good for another person, everyone can benefit from a public good simultaneously, and one person cannot be prevented from using it. Public goods are the products or services that can be consumed by one person without reducing the availability of that product or service to others i.e., it is available to everyone in an area that is called non-rivalrous, and it cannot be denied to someone once it is available, which is called non-excludable. Examples of public goods are – national defence, clean air, and water, public parks.

Merit goods are products or services whose consumption should be subsidised for achieving social goals, i.e. They are under-consumed by the people, and hence state intervention is required to make them affordable for all sections of the society. Merit goods are products or services subsidised by the government to ensure they reach those sections of society that might not be able to afford them otherwise, and they help in making an individual's living standard better and give a boost to social goals like poverty reduction, youth empowerment, health, etc. Some examples of merit goods are - primary education, healthcare, drinking water and sanitation.