NCERT Solutions are contemplated as an exceptionally helpful book while preparing for the CBSE Class 12 Economics Board examinations. This study resource possesses an intense knowledge and the Solutions collated by the subject matter experts are no different. This chapter is a brief introduction to Macroeconomics.
Access NCERT Solutions for Class 12 Economics Chapter 1 – Introduction
NCERT Macroeconomics Solutions Class 12 Chapter 1
1. What is the difference between microeconomics and macroeconomics?
- Deals with the behaviour, choices and incentives of individuals or individual companies.
- Pioneered by economists such as Alfred Marshall
- Can be used to explain consumer behaviour, the theory of price and marketing principles.
- Deals with the economy as a whole, including governments, corporations and regulatory institutions.
- Pioneered by economists such as J.M. Keynes
- Can be used to explain aggregate market performance, unemployment, growth and overall market predictions.
2. What are the important features of a capitalist economy?
These are the important features of a capitalist economy
- The means of production are privately owned.
- The maximization of profit is the main motive for the producers.
- The market determines the price of the product based on demand and supply.
- There is competition among the producers and free enterprise is ensured.
3. Describe the four major sectors in an economy according to the macroeconomic point of view.
These are the four major sectors in the economy according to the macroeconomic point of view.
i) The production sector that is responsible for the production of goods and services
ii) The household sector that consumes the goods and services produced in the economy
iii) The government sector that is responsible for framing laws and regulating policies that affect the economy and the people.
iv) The external sector that refers to the rest of the world which is interconnected through trade. (Exports and Imports)
4. Describe the Great Depression of 1929.
The Great Depression of 1929 was one of the worst economic depressions in the history of the world. It began when the U.S. stock market crashed in 1929 and lasted until the end of the 1930s. Several causes are considered to be responsible for this period of economic downturn. Raising debt levels, fall in profits and the gold standard system are some attributed causes.
The Great Depression led to a series of problems for the economy and the people. There was a drastic decrease in production and consumption in the economy. The rate of unemployment skyrocketed resulting in hardships across the population. A lot of prominent banks failed and ran out of business. Eventually, the great depression shaped the politics of the U.S. and laid the foundations for The New Deal.
NCERT Solution for Class 12 Economics Chapter 1 – Introduction gives a brief presentation about the subject.
Chief concepts of this introductory chapter –
- Macroeconomics – It deals with the aggregate economic variables of the economy.
- Revenue – The money that is earned is called revenue.
NCERT Solutions for Class 12 Economics Chapter 1 provides a broad degree of illustrative examples; which helps the students to comprehend and learn quickly. The above mentioned are the illustrations for the Class 12 CBSE syllabus. For more solutions and study materials of NCERT solutions for Class 12 Economics, visit BYJU’S or download the app for more information.