NCERT Solutions Class 12 Economics
NCERT Solutions for Class 12 Economics are provided here in the simplest and understandable method. Our experts have designed the solutions in a trouble-free manner so that learners can easily learn things. Learners will get a lot of help in scoring outstanding in Board Exams as well as future studies. Here, at Edugross, we have provided the wide range of concepts which includes all the questions as per latest CBSE Board Guidelines. With the help of these NCERT Solutions for Economics, learners can increase their efficiency in problem-solving and will get proper guidance.
The practical and theoretical science of the production and distribution of wealth is Economics. Economics is based around the system of the production, buying and selling of goods and services. Samuelson is known as the father of modern Economics. Samuelson became the first American to win the Nobel Prize in Economics in 1970 for his work to transform the fundamental nature of the discipline.
At Edugross, we have covered the entire syllabus of Class 12 CBSE Board. NCERT Solutions for Economics is available here for learners to plan a good preparation schedule for Board Exams. NCERT Solutions for Economics will help the students to increase and develop their economic knowledge. Learners will get a lot of option with Economics as subject in future also. Here, at Edugross, we have provided material to learn offline so you can Download free pdf of NCERT Solutions for Class 12 Economics.
A list of chapters provided in Class 12 Economics NCERT Solutions free pdf
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1) NCERT Solutions for Class 12 Microeconomics Chapter 1 Introduction to Microeconomics
Microeconomics is a branch that studies the behavior of individuals and firms in making decisions regarding the allocation of scare resources and the interactions among these individuals and firms. These solutions are provided here for students so that they can study microeconomics in detail.
Download free pdf of Class 12 NCERT Solutions for Economics Chapter 1 Introduction to Microeconomics at Edugross. A list of topics from the chapter ‘Introduction to Microeconomics’ is given below-
- Micro and macro concept of Economics
- Positive and Normative Economics
- Economics Problem
- Economy and its Central Problems
- Production Possibility Curve and Opportunity Cost
Some important points from the chapter ‘Introduction to Microeconomics’ are given below-
- Positive economics is that branch of economics which deals with such issues which are verifiable. For example – 21% of population in India is below poverty line.
- Normative economics is that branch of economics which deals with such issues which involves value judgement and are not verifiable. For example- farmers should always be granted subsidies to ensure good returns on their investment.
- Economic problem is a problem related to the allocation of resources arising due to limited means unlimited want.
- Scarcity is a situation when the requirement of goods exceeds their availability so that good acquires market value (or price).
2) NCERT Solutions for Class 12 Microeconomics Chapter 2 Theory of Consumer Behaviour
How people decide to spend their money based on their individual preferences and budget constraints is called Consumer Theory. Consumer theory describes how individuals make choices, subject to how much income they have available to spend and the prices of goods and services. This chapter’s solutions will help you to understand the consumers behaviour.
Download free pdf of Class 12 NCERT Solutions for Economics Chapter 2 Theory of Consumer Behaviour at Edugross. A list of topics from the chapter ‘Theory of Consumer Behaviour’ is given below-
- The Consumer’s Budget
- Preferences of the Consumer
- Optimal Choice of the Customers
- Market Demand
- Elasticity of Demands
Some important points from the chapter ‘Theory of Consumer Behaviour’ are given below-
- Want satisfying capacity of commodity is known as utility.
- Total utility is the sum of marginal utilities from the consumption of different unit of a commodity.
- TUn = MU1 + MU2 + MU3……+ MUn = ∑MU
- Budget set is the attainable combinations of a set of two goods, given the prices of goods and income of the consumer.
- The solpe of the budget line shows the price ratio between Good-1 and Good-2.
3) NCERT Solutions for Class 12 Microeconomics Chapter 3 Production and Costs
Production and product costs are the costs incurred by a business from manufacturing a product or providing a service. Production costs can contain a variety of expenses, such as labor, raw materials, consumable manufacturing supplies and general overhead. In this chapter, learners will study about productions and the costs of products.
Download free pdf of Class 12 NCERT Solutions for Economics Chapter 3 Production and Costs at Edugross. A list of topics from the chapter ‘Production and Costs’ is given below-
- Production function
- The short run and the long run
- Total product, Average product and Marginal product
- The Law Of Diminishing Marginal Product and The Law Of Variable Proportions
- Shapes of total products, Marginal product and Average product curve
- Returns to scale
Some important points from the chapter ‘Production and Costs’ are given below-
- Total Product (TP) is the sum of total of output produced by all units of labour. For example- 10 workers producing 5 chairs each, total product = 10 × 5 = 50 chairs.
- Average Product (AP) is output per unit of labour (L). For example- AP = TP / L
- Marginal Product (MP) is change in total output when one more unit of labour is employed, other factors remaining constant. For example- MP = TPn – TPn-1
- Production Function means the fuctional relationship between physical inputs and physical outputs
4) NCERT Solutions for Class 12 Microeconomics Chapter 4 The Theory of Firm under Perfect Competition
Under perfect competition, there are many buyers & sellers and prices reflect supply & demand. Companies earn just enough profit to stay in business and no more. These solutions will help you to understand about the buyers, sellers and the prices of products.
Download free pdf of Class 12 NCERT Solutions for Economics Chapter 4 The Theory of Firm under Perfect Competition at Edugross. A list of topics from the chapter ‘The Theory of Firm under Perfect Competition’ is given below-
- Perfect competition: Defining features
- Profit Maximization
- Supply Curve of Firm
- Determinant of a Firm’s Supply Curve
- Market Supply Curve
- Price Elasticity of Supply
Some important points from the chapter ‘The Theory of Firm under Perfect Competition’ are given below-
- Tabular statements of relationship between price and supply of commodity is called supply schedule.
- Graphical presentation of relationship between price and supply of a commodity is known as supply curve.
- The market supply curve for a commodity shows relationship between the price of a given commodity and quantity sellers are inclined to sell.
- Elasticity of supply can be defined as a measure of the degree of responsiveness of quantity supplied to changes in the commodity’s own prices.
5) NCERT Solutions for Class 12 Microeconomics Chapter 5 Market Competition
Competition is the struggle between companies selling similar products and services with the goal of achieving revenue, profit and market share growth. Market competition inspires companies to increase sales volume by utilizing the four components of the marketing mix. In this chapter, students will study about the major and every type of competition in market.
Download free pdf of Class 12 NCERT Solutions for Economics Chapter 5 Market Competition at Edugross. A list of topics from the chapter ‘Market Competition’ is given below-
- Excess demand and excess supply
- Market competitions
- Price floor
Some important points from the chapter ‘Market Competition’ are given below-
- E-marketing refers to online sale and purchase of goods and services.
- A price maker firm refers to a monopoly firm which has complete control over price of the product in the market.
- Monopoly is the market form with a single seller and many buyers of a commodity; with no close substitutes.
6) NCERT Solutions for Class 12 Microeconomics Chapter 6 Non-Competitive Market
When the agents acting in such a market have the power to influence the price, directly or indirectly, something that does not occur under perfect competition then the market is called non-competitive market.
Download free pdf of Class 12 NCERT Solutions for Economics Chapter 6 Non-Competitive Market at Edugross. A list of topics from the chapter ‘Non-Competitive Market’ is given below-
- Simple monopoly in the commodity market
- Marginal revenue and price elasticity of demand
- Total revenue and marginal average
- Other non-perfectly competitive markets
- Monopolistic competition
Some important points from the chapter ‘Non-competitive Markets’ are given below-
- Monopolistic competition refers to a market situation in which there are many firms which sell closely related but differentiated products.
- Product differentiation means differentiating the product on the basis of brand, colour, shape, etc.
- Selling cost is the expenses which are incurred for promoting sales or inducing customers to buy a good of a particular brand.
- Persuasive Advertising refers to advertising so as to lure consumers avail from one brand to another.
- Oligopoly is a market situation in which an industry has only a few firms (or few large firms producing most of its output) mutually dependent for taking decisions about price and output.
1) NCERT Solutions for Class 12 Macroeconomics Chapter 1 Introduction to Macroeconomics
The study of the behaviour of the whole economy is called macroeconomics. In such an economy, economic decisions are taken by individuals and firms acting independently of one another and coordinated via the market mechanism.
Download free pdf of Class 12 NCERT Solutions for Economics Chapter 1 Introduction to Macroeconomics at Edugross. A list of topics from the chapter ‘Introduction to Macroeconomics’ is given below-
- Emergence of Macroeconomics
- Context of the Present Book of Macroeconomics
Some important points from the chapter ‘Introduction to Macroeconomics’ are given below-
- Income earned by factor of production by rendering their productive services in the production process is called factor income.
- Income received without rendering any productive services is called transfer income.
- Capital transfers are defined as transfers in cash and in kind for the purpose of investment to recipient made out of the wealth or saving of a donor.
- Consumption goods are those goods which satisfy the wants of consumers directly.
2) NCERT Solutions for Class 12 Macroeconomics Chapter 2 National Income Accounting
National income accounting is a government book-keeping system that measures a country’s economic activity offering insight into how an economy is performing. Such a system will include total revenues by domestic corporations, wages paid and sales & income tax data for companies. These solutions are provided here so that students can learn about the economic activity in the country.
Download free pdf of Class 12 NCERT Solutions for Economics Chapter 2 National Income Accounting at Edugross. A list of topics from the chapter ‘National Income Accounting’ is given below-
- Some Basic Concepts of Macroeconomics
- Circular Flow of Income and Methods of Calculating National Income
- Some Macroeconomic Identities
- Goods and Prices
- GDP and Welfare
Some important points from the chapter ‘National Income Accounting’ are given below-
- The goods which are directly used for the satisfaction of humans are called consumption goods. For example- ice-cream and milk used by household.
- The goods which are used as fixed assets by the producers in the production of other goods and services. For example- Tractors used by the farmers.
- The goods which have crossed the boundary line of production and are ready for use by their final users are known as final goods. For example – clothes, milk consumed by a consumer.
- Gross investment refers to the expenditure by the producers on the purchase of all such goods which add to their stocks of capital as well as expenditure on the replacement of existing fixed assets.
- Gross investment = Net investment + Depreciation
- According to the expenditure method, domestic product is estimated as the sum of total of expenditure on the purchase of final goods and services produce within the domestic territory of the country, during the year of estimation.
- Expenditure of final goods = GDPMP = GVAMP (MP = Market Price)
3) NCERT Solutions for Class 12 Macroeconomics Chapter 3 Money and Banking
Money is any good that is mostly used and accepted in transactions involving the transfer of goods and services from one person to another. Banking is defined as the business activity of accepting and protecting money owned by other individuals and entities. These solutions will help you to understand banking and how money is kept protected in bank.
Download free pdf of Class 12 NCERT Solutions for Economics Chapter 3 Money and Banking at Edugross. A list of topics from the chapter ‘Money and Banking’ is given below-
- Functions of Money
- Demand for Money
- The Speculative Motive
- The Transaction Motive
- The Supply of Money
Some important points from the chapter ‘Money and Banking’ are given below-
- Anything which is commonly accepted as a medium of exchange is called money.
- Supply of money is a stock concept. It refers to total currency and notes with the people as well as demand deposits of the commercial banks at a point of time.
- Supply of money = Currency held by the people + Net demand deposits held by commercial banks
- Credit multiplier is the reciprocal of CRR (Credit Reserve Ratio). It shows the number of times cash reserves of the commercial banks multiply to be equal to demand deposits.
- k = 1 / CRR
- Central bank is an apex banking institution which controls and manages the entire banking system in the country.
4) NCERT Solutions for Class 12 Macroeconomics Chapter 4 Determination of Income and Employment
The theory of determination of national income is concerned with finding out the equilibrium level of national income i.e. the level of national income at which the purchasing and production plans of the economy are synchronized. These solutions are given here for learners so that they can learn about the income and employment in detail.
Download free pdf of Class 12 NCERT Solutions for Economics Chapter 4 Determination of Income and Employment at Edugross. A list of topics from the chapter ‘Determination of Income and Employment’ is given below-
- Exe Anti and Exe Post
- Movement Along a Curve Versus Shift of a Curve
- The Short Run Fixed Price Analysis of the Product Market
- The Multiplier Mechanism
Some important points from the chapter ‘Determination of Income and Employment’ are given below-
- Full Employment refers to a situation when all those who are able to work and are willing to work are getting work.
- Involuntary unemployment refers to a situation when people are willing to work at the existing wage rate but are not getting work owing to lack of demand in the market.
- Higher MPS (Marginal Propensity to Save) implies lower multiplier (K), as K = 1 / MPS.
- Higher MCP implies higher multiplier (K), as K = 1 / (1 – MPC).
5) NCERT Solutions for Class 12 Macroeconomics Chapter 5 Government Budget and Economy
A budget is an estimate of income and expenditure for a future period as opposed to an account which records financial transaction. With the increasing importance of government expenditure in the economy, the annual budget is an important instrument of the government’s macroeconomic policy. These solutions are given here for students so that they can learn online and offline.
Download free pdf of Class 12 NCERT Solutions for Economics Chapter 5 Government Budget and Economy at Edugross. A list of topics from the chapter ‘Government Budget and Economy’ is given below-
- Component of the government budget
- The revenue account
- Fiscal policy
- The capital account
- Changes in taxes
Some important points from the chapter ‘Government Budget and Economy’ are given below-
- Revenue Receipts are those receipts which do not cause any reduction in assets of the government and do not create any liability for the government (Example- Tax receipts of the government).
- Capital Receipts are those which create a corresponding liability for the government (Example- Loans by the government) and which cause reduction in assets of the government (Example- Disinvestment).
- Revenue Deficit is the excess of revenue expenditure over revenue receipts.
- Revenue Deficit = Revenue expenditure – Revenue receipts
- Fiscal deficit is the excess of total expenditure (revenue + capital) over total receipts (revenue + capital other than borrowings).
- Fiscal deficit = Total expenditure – Total receipts other than borrowing
- Primary deficit is the difference between fiscal deficit and interest payments.
- Primary deficit = Fiscal deficit – Interest payment
6) NCERT Solutions for Class 12 Macroeconomics Chapter 6 Open Economy Macroeconomics
An open economy is a type of economy where not only domestic actors but also entities in other countries engage in trade of products. In this chapter, learners will study about open economy in macroeconomics.
Download free pdf of Class 12 NCERT Solutions for Economics Chapter 6 Open Economy Macroeconomics at Edugross. A list of topics from the chapter ‘Open Economy Macroeconomics’ is given below-
- The Balance of Payment
- The Foreign Exchange Market
- The Determination of Income is an Economy
- Trade Deficits, Saving and Investment
Some important points from the chapter ‘Open Economy Macroeconomics’ are given below-
- Foreign exchange refers to currencies of other countries.
- Balance of payment deficit refers to the excess of payment over and above the receipts of a country of foreign exchange on account of autonomous transaction with rest of the world.
- Fixed exchange rate is a rate fixed and determined by the government of a country and the government alone changes it.
- Equilibrium rate of change occurs where supply of and demand for foreign exchange are equal to each other.
Advantages of Solving Class 12 Economics NCERT Solutions
- NCERT Solutions provide a step-by-step explanation to every question given in the textbooks. It is one of the most valuable aids to students in their home assignments and exams as well.
- Solving these NCERT Solutions will help students clearing all their doubts.
- These NCERT Solutions are prepared as per the syllabus of the respective subject and thus, provide proper guidance with a thorough learning process.
- NCERT Solutions help in clearing the tough concepts as these NCERT Solutions are designed using proper explanations.
- To score optimum marks in the examination, the students need to practice these NCERT Solutions as it contains a variety of questions for practice purpose. This will help students to have an easy hand at the Erroneous Questions as well.
- While studying in CBSE Board Schools, students always get confused while choosing the right study material. Therefore, the best option is NCERT Solutions as it covers the whole CBSE Syllabus for Class 12 Economics.
- NCERT Solutions give significant learning and also helps students to upgrade their skills.
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