NCERT Solutions Class 12 Economics
NCERT Solutions for Class 12 Economics are provided here most simply and understandably. Our experts have designed the solutions in a hassle-free manner so that the learners can learn things easily. It will be very helpful for the learners to score excellently in board exams as well as in future studies. Here, at Study tutee, we have provided a wide range of concepts which includes all the questions as per the latest CBSE board guidelines. With the help of these NCERT Solutions for Economics, learners can increase their proficiency in problem-solving and will get proper guidance.
Economics is the applied and theoretical science of the production and distribution of wealth. Economics is based on the system of production, buying, and selling of goods and services. Samuelson is called the father of modern economics. Samuelson became the first American to win the Nobel Prize in Economics in 1970, for his work changing the fundamental nature of the discipline.
At Study tutee, we have covered the entire syllabus of the 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 options with Economics as the subject in future also. Here, at Study tutee, we have provided material for offline learning so that you can download a free PDF of NCERT Solutions for Class 12 Economics.
Class 12 Economics NCERT Solutions List of Chapters Available in 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 scarce resources and the interactions between these individuals and firms. These solutions are provided here for the students so that they can study microeconomics in detail.
Download free PDF of Study tutee Class 12 NCERT Solutions for Economics Chapter 1 Introduction to Microeconomics. The list of topics of 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 of the chapter ‘Introduction to Microeconomics’ are given below-
- Positive economics is the branch of economics that deals with verifiable issues. For example – 21% of the population in India is below the poverty line.
- General economics is the branch of economics that deals with issues that involve value judgments and are not verifiable. For example- farmers should always be given subsidies to ensure a good return on their investment.
- The economic problem is the problem related to the allocation of resources arising due to the unlimited need for limited resources.
- A shortage is a situation when the need for a commodity exceeds its availability so that the commodity attains 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 personal preferences and budget constraints is called consumer theory. Consumer theory states that how individuals make choices depends on how much income they have available to spend and the prices of goods and services. The solutions in this chapter will help you understand consumer behavior.
Download NCERT Solutions for Class 12 Economics Chapter 2 Theory of Consumer Behaviour in PDF from Study tutee. The list of topics of 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 of the chapter ‘Theory of Consumer Behaviour’ are given below-
- The desired satisfying capacity of the commodity is known as utility.
- Total utility is the sum of marginal utilities from the consumption of different units of a commodity.
- TUn = MU1 + MU2 + MU3……+ MUn = ∑MU
- The budget set is the receivable combination of a set of two goods, given the prices of the goods and the income of the consumer.
- The budget line solution 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 include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead. In this chapter, learners will study the cost of production and products.
Download free PDF of NCERT Solutions for Class 12 Economics Chapter 3 Production and Cost on Study tutee. The topics of the chapter ‘Production and Costs’ are listed 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 of the chapter ‘Production and Costs’ are given below-
- Total Product (TP) is the sum of the total output produced by all the units of labor. For example- 10 workers producing 5 chairs, total product = 10 × 5 = 50 chairs.
- Average Product (AP) is the output (L) per unit of labor. 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 functional 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 and sellers and prices reflect supply and demand. Companies make enough profit to remain in business and no more. These solutions will help you understand buyers, sellers, and the prices of products.
Download free PDF of NCERT Solutions for Economics Chapter 4 The Theory of Firms under Perfect Competition in Study tutee. The 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-
- A tabular description of the relationship between the price and supply of a commodity is called a supply schedule.
- The graphical representation of the relationship between the price and supply of a commodity is known as the supply curve.
- The market supply curve for a commodity shows the relationship between the price of a commodity and the quantity that sellers are willing to sell.
- The elasticity of supply can be defined as the measure of the degree of response of the quantity supplied of a commodity to changes in its prices.
5) NCERT Solutions for Class 12 Microeconomics Chapter 5 Market Competition
Competition is a struggle between companies selling similar products and services to achieve an increase in revenue, profit and market share. Market competition drives companies to increase sales volume using the four components of the marketing mix. In this chapter, students will study the major and all types of competition in the market.
Download NCERT Solutions for Economics Chapter 5 Market Competition Class 12 Free PDF on Study tutee. The list of topics of 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 the online sale and purchase of goods and services.
- A price maker firm refers to a monopoly firm that has complete control over the price of the product in the market.
- A monopoly is a form of market in which there is only one seller and many buyers of a commodity; With no close options.
6) NCERT Solutions for Class 12 Microeconomics Chapter 6 Non-Competitive Market
When the agents operating in such a market have the power to influence the price directly or indirectly, which is not subject to perfect competition, the market is said to be a non-competitive market.
Download Study tutee Class 12 NCERT Solutions for Economics Chapter 6 Non-Competitive Market PDF for free. Below is a list of topics from the chapter ‘Non-competitive Market’: –
- 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 Market’ are given below-
- Monopolistic competition refers to a market situation in which many firms sell closely related but different products.
- Product differentiation means to differentiate the product based on brand, color, size, etc.
- Selling cost is the cost of promoting sales or inducing customers to buy goods of a particular brand.
- Persuasive advertising refers to advertising to entice consumers to take advantage of one brand from another.
- Oligopoly is a market condition in which only a few firms (or a few large firms that produce most of their output) in an industry are interdependent to make decisions about price and output.
1) NCERT Solutions for Class 12 Macroeconomics Chapter 1 Introduction to Macroeconomics
The study of the behavior of the entire economy is called macroeconomics. In such an economy, economic decisions are taken by individuals and firms that act independently of each other and are coordinated through market mechanisms.
Download free PDF of NCERT Solutions for Class 12 Economics Chapter 1 Introduction to Macroeconomics in Study tutee. The list of topics of the chapter ‘Introduction to Macroeconomics’ is given below-
- Emergence of Macroeconomics
- Context of the Present Book of Macroeconomics
Some important points of the chapter ‘Introduction to Macroeconomics’ are given below-
- The income earned by a factor of production by rendering its productive services in the production process is called factor income.
- Income received without any productive services is called transfer income.
- A capital transfer is defined as the transfer of cash and investment of money from the savings of the recipient or the donor.
- Consumption goods are those goods that directly satisfy the needs of the consumers.
2) NCERT Solutions for Class 12 Macroeconomics Chapter 2 National Income Accounting
National income accounting is a government bookkeeping method that measures a country’s economic activity to show how the economy is performing. Such a system would include total revenue, wages paid, and sales and income tax data for companies by domestic corporations. These solutions are provided here so that the students can know about the economic activities in the country.
Download free PDF of NCERT Solutions for Economics Chapter 2 National Income Accounting for Class 12 on Study tutee. The list of subjects of 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 of the chapter ‘National Income Accounting’ are given below-
- Those goods which are directly used for the satisfaction of human beings are called goods of consumption. For example- ice cream and milk are used at home.
- Goods that are used by producers as fixed assets in the production of other goods and services. For example- tractors are used by farmers.
- The goods which have crossed the limit line of production and are ready for use by their end-users are known as final goods. For example – clothes, milk which the consumer consumes.
- Gross investment refers to the expenditure incurred by producers on the purchase of all such goods adding up to their stock 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 the total expenditure on the purchase of final goods and services produced within the domestic sector of the country during the year of the estimate.
- Expenditure of final goods = GDPMP = GVAMP (MP = Market Price)
3) NCERT Solutions for Class 12 Macroeconomics Chapter 3 Money and Banking
Money is any commodity that is mostly used in transactions and accepted in 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 persons and entities. These solutions will help you understand banking and how money is kept safe in the bank.
Download Study tutee Class 12 NCERT Solutions for Economics Chapter 3 Money and Banking PDF for free. The 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-
- Any commodity which is generally accepted as a medium of exchange is called money.
- The money supply is a stock concept. It refers to the total currency and notes held by the people as well as the demand deposits of commercial banks at a time.
- Money supply = money held by people + net demand deposits held by commercial banks
- The credit multiplier is the reciprocal of the CRR (Credit Reserve Ratio). It shows how many times the number of cash reserves of commercial banks is equal to the demand deposits.
- K = 1 / CRR
- The Central Bank is an apex banking institution that 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 principle 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 the learners so that they can know about income and employment in detail.
Download Study tutee Class 12 NCERT Solutions for Economics Chapter 4 Determination of Income and Employment PDF for free. The list of subjects of 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 of the chapter ‘Determination of Income and Employment’ are given below-
- Full employment refers to the situation when all those who are able and willing to work are getting work.
- Involuntary unemployment refers to the situation when people are willing to work at the prevailing wage rate but they are not getting work due to lack of demand in the market.
- Higher MPS (marginal propensity to save) implies a lower multiplier (K), such as K = 1 / MPS.
- Higher MCP means higher multiplier (K), eg 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 expenses for a future period, as opposed to an account that records financial transactions. 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 the students so that they can learn online and offline.
Download free PDF of Study tutee NCERT Solutions for Class 12 Economics Chapter 5 Government Budget and Economy on Study tutee. The list of topics of 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 that do not reduce the assets of the government and do not create any liability for the government (eg- tax receipts of the government).
- Capital receipts are those that create a corresponding liability for the government (eg, loans by the government) and which cause a reduction in government assets (eg, 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
- A primary deficit is a 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 from other countries engage in the trade of products. In this chapter, learners will study the open economy in macroeconomics.
Download free PDF of Study tutee Class 12 NCERT Solutions for Economics Chapter 6 Open-Economy Macroeconomics. The list of topics of 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-
- Forex refers to the currencies of other countries.
- Balance of payments deficit refers to excess payments in addition to a country’s foreign exchange receipts due to autonomous transactions with the rest of the world.
- A fixed exchange rate is the rate set and fixed by the government of a country and the government alone changes it.
- The equilibrium rate of change occurs when the supply and demand for foreign exchange are equal to each other.
Benefits of Solving Class 12 Economics NCERT Solutions
- NCERT Solutions provides step by step explanation of every question given in the textbooks. It is one of the most valuable aids to the students in their homework and exams as well.
- Solving these NCERT solutions will help the students to clear all their doubts.
- These NCERT solutions are designed as per the syllabus of the subject concerned and thus, provide proper guidance along with the entire learning process.
- NCERT solutions help in clearing difficult concepts as these NCERT solutions are prepared using proper explanations.
- To score maximum marks in the exam, students need to practice these NCERT solutions as it consists of different types of questions for practice purpose. This will help the students to solve the wrong questions easily.
- While studying in CBSE board schools, students always get confused while selecting the right study material. Hence, the best option is NCERT Solutions as it covers the entire CBSE syllabus for Class 12 Economics.
- NCERT solutions give valuable education and also help students to upgrade their skills.
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Economics is one of the subjects that students find interesting but here, at Study tutee, we provide you with the most accurate and easiest ways to solve various questions. Moreover, these solutions help the students to develop their reasoning and logical skills. All the study material here is completely based on the latest pattern and syllabus which is prescribed by the CBSE board. The study material provided in Study tutee completely covers all the basic principles of class 12 economics with exercises and solutions.
Download Class 12 Economics NCERT Solutions PDF for free from this page and make your practice easy and enjoyable.