Economics class 12

The syllabus of Economics Class 12 comprises of the following chapters. We have prepared various notes, relevant for the student of Economics Class 12, who may be studying in CBSE, ISC or as per the NCERT syllabus. Each of these notes have been given under the particular chapter, which you can click and read : –

Microeconomics Class 12 Notes

Chapter 1 – Introduction

  1. A Simple Economy
  2. Central problems of an Economy
  3. Organisation of Economic Activities
  4. The Centrally Planned Economy
  5. The Market Economy
  6. Positive and Normative Economics
  7. Microeconomics and Macroeconomics

Other Additional Notes

Chapter 2 – Theory of Consumer Behavior

  1. Utility
  2. Measurement of Utility
  3. The Consumer’s Budget
  4. Optimal Choice of the Consumer
  5. Demand
    • Demand Curve and the Law of Demand
    • Deriving a Demand Curve from Indifference Curves and Budget Constraints
    • Normal and Inferior Goods
    • Substitutes and Complements
    • Shifts in the Demand Curve
    • Movements along the Demand Curve and Shifts 26 in the Demand Curve
  6. Market Demand
  7. Elasticity of Demand
    • Elasticity along a Linear Demand Curve
    • Factors Determining Price Elasticity of Demand for a Good
    • Elasticity and Expenditure

 Chapter 3 – Production and Costs

  1. Production Function
  2. The Short Run and the Long Run
  3. Total Product, Average Product and Marginal Product
    • Total Product
    • Average Product
    • Marginal Product
  4. The Law of Diminishing Marginal Product and the Law of Variable Proportions
  5. Shapes of Total Product, Marginal Product and Average Product Curves
  6. Returns to Scale
  7. Costs

Chapter 4 – The Theory of the Firm under Perfect Competition

  1. Perfect Competition: Defining Features
  2. Revenue
  3. Profit Maximisation
    • Condition 1
    • Condition 2
    • Condition 3
    • The Profit Maximisation Problem: Graphical Representation
  4. Supply Curve of a Firm
    • Short Run Supply Curve of a Firm
    • Long Run Supply Curve of a Firm
    • The Shut Down Point
    • The Normal Profit and Break-even Point
  5. Determinants of a Firm’s Supply Curve
    • Technological Progress
    • Input Prices
  6. Market Supply Curve
  7. Price Elasticity of Supply

Other Additional Notes

Chapter 5 – Market Equilibrium

  1. Equilibrium, Excess Demand, Excess Supply
    • Market Equilibrium: Fixed Number of Firms
    • Market Equilibrium: Free Entry and Exit
  2. Applications
    • Price Ceiling
    • Price Floor

Chapter 6 – Non-Competitive Markets

  1. Simple Monopoly in the Commodity Market
    • Market Demand Curve is the Average Revenue Curve
    • Total, Average and Marginal Revenues
    • Marginal Revenue and Price Elasticity of Demand
    • Short Run Equilibrium of the Monopoly Firm
  2. Other Non-perfectly Competitive Markets
    • Monopolistic Competition
    • How do Firms behave in Oligopoly?

Macroeconomics Class 12 Notes

Chapter 1 – Introduction

  1. Emergence of Macroeconomics
  2. Context of the Present Book of Macroeconomics

Other Additional Notes

Chapter 2 – National Income Accounting

  1. Some Basic Concepts of Macroeconomics
  2. Circular Flow of Income and Methods of Calculating National Income
    • The Product or Value Added Method
    • Expenditure Method
    • Income Method
    • Factor Cost, Basic Prices and Market Prices
  3. Some Macroeconomic Identities
  4. Nominal and Real GDP
  5. GDP and Welfare

Other Additional Notes

Chapter 3 – Money and Banking

  1. Functions of Money
  2. Demand for Money and Supply of Money
    • Demand for Money
    • Supply of Money
  3. Money Creation by Banking System
    • Balance Sheet of a Fictional Bank
    • Limits to Credit Creation and Money Multiplier
  4. Policy Tools to Control Money Supply

Other Additional Notes

Chapter 4 – Determination of Income and Employment

  1. Aggregate Demand and its Components
    • Consumption
    • Investment
  2. Determination of Income in Two-sector Model
    • Determination of Equilibrium Income in the Short Run
    • Macroeconomic equilibrium with price level fixed
    • Effect of an autonomous change in aggregate demand on income and output
    • The Multiplier Mechanism
  3. Some More Concepts

Chapter 5 – Government Budget and The Economy

  1. Government Budget – Meaning and its Components
  2. Balanced, Surplus and Deficit Budget
    • Measures of Government Deficit

Chapter 6 – Open Economy Macroeconomics

  1. The Balance of Payments
    • Current Account
    • Capital Account
    • Balance of Payments Surplus and Deficit
  2. The Foreign Exchange Market
    • Foreign Exchange Rate
    • Determination of the Exchange Rate
    • Merits and Demerits of Flexible and Fixed Exchange Rate Systems
    • Managed Floating

Other Additional Notes

We are also providing Economics MCQs, for chapters which are covered in Class 12 Economics as well as applicable for entrance examinations like CA CPT, CS Foundation and other equivalent examinations in India and other countries. Each Economics MCQs Test contains 10 questions.  Answers to Economics MCQs are available at the end of the last question.

Chapter NumberTopic Name
Chapter 1Introduction to Micro Economics
Chapter 2Theory of Consumer Behaviour
Chapter 2Theory of Demand
Chapter 2Theory of Supply
Chapter 3Theory of Production
Chapter 3Theory of Cost
Chapter 4Market
Chapter 4Determination of Price
Chapter 4Price and Output Determination
Chapter 5Role of Different Sectors
Chapter 5Indian Economy
Chapter 5National Income
Chapter 5Tax System
Chapter 6Population
Chapter 6Poverty
Chapter 6Unemployment
Chapter 6Infrastructural Challenges
Chapter 6Inflation
Chapter 6Budget and Fiscal Deficits
Chapter 7Economic Reforms in India
Chapter 7Liberalisation, Privatisation and Disinvestment
Chapter 7Globalisation
Chapter 8Money
Chapter 8Commercial Banks
Chapter 8Reserve Bank of India (RBI)

 

Instructions to attempt the Economics MCQs

  • Each Economics MCQs Test contains 10 questions.
  • Answers to Economics MCQs are available at the end of the last question.  
  • Each MCQ has 3 to 4 options of which one is correct;
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