Class 12 Economics Notes

Chapters in Class 12 Economics

1. Chapter 1: Introduction Of Microeconomics

   6 topics

   • Introduction of Microeconomic
   • A Simple Economy
   • Central problem of economy
   • Organization of Economic Activities
   • Positive and Normative Economics
   • Microeconomics and Macroeconomics

2. Chapter 2: Theory of Consumer Behaviour

   8 topics

   • Introduction of the Theory of Consumer Behaviour
   • Utility
   • Features of Indifference Curves
   • The Consumer’s Budget
   • Optimal Choice of the Consumer
   • Demand
   • Market Demand
   • Elasticity of Demand

3. Chapter 3: Production and Costs

   8 topics

   • Introduction of Production and Costs
   • 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
   • Returns to Scale
   • Costs
   • Cost : Long Run Costs

4. Chapter 4: The theory of the firm under perfect cometition

   12 topics

   • Introduction of The theory of the firm under perfect cometition
   • Perfect competition : defining feature
   • Revenue
   • Profit Maximization
   • Supply curve of a firm
   • supply curve of a firm : Long Run Supply Curve of a Firm
   • supply curve of a firm : The Shut Down Point
   • supply curve of a firm : The Normal Profit and Break-even Point

5. Chapter 5: Market Equilibrium

   9 topics

   • Introduction of Market Equilibrium
   • Equilibrium, Excess Demand, and Excess Supply
   • Market Equilibrium with a Fixed Number of Firms
   • Shifts in Demand and Supply
   • Demand Shift
   • Supply Shift
   • Market Equilibrium: Free Entry and Exit
   • Applications : Price Ceiling

6. Chapter 6: Introduction Of Macroeconomics

   3 topics

   • Introduction to Macroeconomics
   • Emergence of macroeconomics
   • Context of present book of macroeconomics

7. Chapter 7: National Income Accounting

   10 topics

   • Introduction of National Income Accounting
   • Some basic concepts of macroeconomics
   • 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
   • Some Macroeconomic identities

8. Chapter 8: Money and Banking

   10 topics

   • Introduction of Money and Banking
   • Function of money
   • Demand for money and supply of money
   • Money creation by banking system
   • Balance Sheet of a Fictional Bank
   • Limits to Credit Creation and Money Multiplier
   • Policy Tools to Control Money Supply
   • The Speculative Motive

9. Chapter 9: Determination of Income and Employment

   9 topics

   • Introduction of Determination of Income and Employment
   • Aggregate Demand and Its Components
   • Consumption
   • Investment
   • Determination of Income in Two-Sector model
   • Determination of Equilibrium Income in the Short Run
   • Effect of an Autonomous Change in Aggregate Demand on Income and Output
   • The Multiplier Mechanism

10. Chapter 10: Government Budget and the Economy

    9 topics

    • Introduction of Government Budget and the Economy
    • Government Budget : Meaning and Its Components
    • Objectives of Government Budget
    • Classification of Receipts
    • Classification of Government Expenditure
    • Balanced, Surplus, and Deficit Budget
    • Measures of Government Deficit
    • Changes in Taxes

11. Chapter 11: Open Economy Macroeconomics

    8 topics

    • Introduction to Open Economy Macroeconomics
    • The Balance of Payments
    • Balance of Payments Surplus and Deficit
    • The Foreign Exchange Market
    • Determination of the Exchange Rate
    • Speculation, Interest Rates and the Exchange Rate, and Exchange Rates in the Long Run
    • Merits and Demerits of Flexible and Fixed Exchange Rate Systems
    • Managed Floating