This page contains the details of the chapters in class 12 Economics. The links take you to the NCERT solutions page for the corresponding chapter.
NCERT solutions for the following chapters are available for class 12 Economics. The solutions for NCERT class 12 Economics are provided in detail and can be viewed by clicking on the links provided. This page gives an overview of the lessons. The Economics book for class 12 is divided into 2 books namely,
Book I:
Introductory Microeconomics
Book II:
Introductory Macroeconomics
The following are the various units available.
Introductory Microeconomics
Book I: Introductory Microeconomics covers the following chapters
1. Introduction to Microeconomics After studying this chapter, the learners will get acquainted with the following concepts:
1.1
A Simple Economy
1.2
Central Problems of an Economy
1.3
Organisation of Economic Activities
1.3.1
The Centrally Planned Economy
1.3.2
The Market Economy
1.4
Positive and Normative Economics
1.5
Microeconomics and Macroeconomics
1.6
Plan of the Book
2. Theory of Consumer Behaviour After studying this chapter, the learners will get acquainted with the following concepts:
2.1
Utility
2.1.1
Cardinal Utility Analysis
2.1.2
Ordinal Utility Analysis
2.2
The Consumer’s Budget
2.2.1
Budget Set and Budget Line
2.2.2
Changes in the Budget Set
2.3
Optimal Choice of the Consumer
2.4
Demand
2.4.1
Demand Curve and the Law of Demand
2.4.2
Deriving a Demand Curve from Indifference Curves and Budget Constraints
2.4.3
Normal and Inferior Goods
2.4.4
Substitutes and Complements
2.4.5
Shifts in the Demand Curve
2.4.6
Movements along the Demand Curve and Shifts in the Demand Curve
2.5
Market Demand
2.6
Elasticity of Demand
2.6.1
Elasticity along a Linear Demand Curve
2.6.2
Factors Determining Price Elasticity of Demand for a Good
2.6.3
Elasticity and Expenditure
3. Production and Costs After studying this chapter, the learners will get acquainted with the following concepts:
3.1
Production Function
3.2
The Short Run and the Long Run
3.3
Total Product, Average Product and Marginal Product
3.3.1
Total Product
3.3.2
Average Product
3.3.3
Marginal Product
3.4
The Law of Diminishing Marginal Product and the Law of Variable Proportions
3.5
Shapes of Total Product, Marginal Product and Average Product Curves
3.6
Returns to Scale
3.7
Costs
3.7.1
Short Run Costs
3.7.2
Long Run Costs
4. The theory of the firm under perfect competition After studying this chapter, the learners will get acquainted with the following concepts:
4.1
Perfect Competition: Defining Features
4.2
Revenue
4.3
Profit Maximisation
4.3.1
Condition 1
4.3.2
Condition 2
4.3.3
Condition 3
4.3.4
The Profit Maximisation Problem: Graphical Representation
4.4
Supply Curve of a Firm
4.4.1
Short Run Supply Curve of a Firm
4.4.2
Long Run Supply Curve of a Firm
4.4.3
The Shut Down Point
4.4.4
The Normal Profit and Break-even Point
4.5
Determinants of a Firm’s Supply Curve
4.5.1
Technological Progress
4.5.2
Input Prices
4.6
Market Supply Curve
4.7
Price Elasticity of Supply
5. Market Equillibrium After studying this chapter, the learners will get acquainted with the following concepts:
5.1
Equilibrium, Excess Demand, Excess Supply
5.1.1
Market Equilibrium: Fixed Number of Firms
5.1.2
Market Equilibrium: Free Entry and Exit
5.2
Applications
5.2.1
Price Ceiling
5.2.2
Price Floor
Introductory Macroeconomics
Book II: Introductory Macroeconomics covers the following chapters
1. Introduction to Macroeconomics After studying this chapter, the learners will get acquainted with the following concepts:
1.1
Emergence of Macroeconomics
1.2
Context of the Present Book of Macroeconomics
2. National Income Accounting After studying this chapter, the learners will get acquainted with the following concepts:
2.1
Some Basic Concepts of Macroeconomics
2.2
Circular Flow of Income and Methods of Calculating National Income
2.2.1
The Product or Value Added Method
2.2.2
Expenditure Method
2.2.3
Income Method
2.2.4
Factor Cost, Basic Prices and Market Prices
2.3
Some Macroeconomic Identities
2.4
Nominal and Real GDP
2.5
GDP and Welfare
3. Money and Banking After studying this chapter, the learners will get acquainted with the following concepts:
3.1
Functions of Money
3.2
Demand for Money and Supply of Money
3.2.1
Demand for Money
3.2.2
Supply of Money
3.3
Money Creation by Banking System
3.3.1
Balance Sheet of a Fictional Bank
3.3.2
Limits to Credit Creation and Money Multiplier
3.4
Policy Tools to Control Money Supply
4. Determination of Income and Employment After studying this chapter, the learners will get acquainted with the following concepts:
4.1
Aggregate Demand and its Components
4.1.1
Consumption
4.1.2
Investment
4.2
Determination of Income in Two-sector Model
4.3
Determination of Equilibrium Income in the Short Run
4.3.1
Macroeconomic equilibrium with price level fixed
4.3.2
Effect of an autonomous change in aggregate demand on income and output
4.3.3
The Multiplier Mechanism
4.4
Some More Concepts
5. Government Budget and the Economy After studying this chapter, the learners will get acquainted with the following concepts:
5.1
Government Budget – Meaning and its Components
5.1.1
Objectives of Government Budget
5.1.2
Classification of Receipts
5.1.3
Classification of Expenditure
5.2
Balanced, Surplus and Deficit Budget
5.2.1
Measures of Government Deficit
6. Open Economy Macroeconomics After studying this chapter, the learners will get acquainted with the following concepts:
6.1
The Balance of Payments
6.1.1
Current Account
6.1.2
Capital Account
6.1.3
Balance of Payments Surplus and Deficit
6.2
The Foreign Exchange Market
6.2.1
Foreign Exchange Rate
6.2.2
Determination of the Exchange Rate
6.2.3
Merits and Demerits of Flexible and Fixed Exchange Rate Systems
6.2.4
Managed Floating
