NCERT Solutions for Class 12 Micro Economics Introduction to Economics

NCERT Solutions for Class 12 Micro Economics Introduction to Economics

NCERT Solutions for Class 12 Micro Economics Introduction to Economics is designed and prepared by the best teachers across India. All the important topics are covered in the exercises and each answer comes with a detailed explanation to help students understand concepts better. These NCERT solutions play a crucial role in your preparation for all exams conducted by the CBSE, including the JEE.

NCERT TEXTBOOK QUESTIONS SOLVED

1. Discuss the central problems of an economy. [4-6 Marks]

Ans. The three central problems of an economy are:

What to produce? [CBSE 2004C, 05, 06, 08, 08C, 09, 10; AI 2006, 10]
  • What to produce refers to a problem in which decision regarding which goods and services should be produced is to be taken.
  • Since its resources are limited, every economy has to decide what commodities are to be produced and in what quantities.
  • The guiding principle for an economy here is to allocate resources in such a way that gives maximum aggregate utility to the society.
How to produce?[CBSE 2014C, 2006, 08C, 10, AI 2001, 05, 08, 10, 11]
  • How to produce refers to a problem in which decision regarding which technique of production should be used is made.
  • Goods and services can be produced in two ways: by using labour intensive techniques, and by using capital-intensive techniques.
  • The guiding principle for an economy in such a case has to decide about the techniques of production on the basis of cost of production. Those techniques of production should be used which lead to the least possible cost per unit of commodity or service.
For whom to produce?[CBSE 2014, 2005C, AI 2013]
  • For whom to produce refers to a problem in which decision regarding which category of people are going to consume a good, i.e., economically poor or rich.
  • As we know, goods and services are produced for those who can purchase them or have the capacity to buy them.
  • Capacity to buy depends upon how income is distributed among the factors of production. The higher the income, the higher will be the capacity to buy and vice versa. So, this is a problem of distribution.
  • The guiding principle is that the economy must see here that important and urgent wants of its citizens are being satisfied for the maximum possible extent or not.
2. What do you mean by the production possibilities of an economy? [ 1 Mark]

Ans. Production possibilities of an economy refer to different combinations of goods and services which an economy can produce from a given amount of resources and a given stock of technology.

3. What is a production possibility frontier? [CBSE 2006C; AI 2006, 09] [1 Mark]

Ans. Production possibility frontier is a curve which depicts all the possible combinations of two goods which can be produced with given resources and technology in an economy.

4. Discuss the subject matter of economics. [3 Marks]

Ans. In view of Mahatma Gandhi Hindustani was a language that the common people could easily understand. Hindustani was a blend of Hindi and Urdu. It was also popular among a large section of the people. Moreover, it was a composite language enriched by the interaction of diverse cultures. Words and terms from many different languages got incorporated into this language over the years.It made this language easily understandable by people from various regions. As per Mahatma Gandhi Hindustani would be the ideal language of communication between the communities. It would help to unify Hindus and Muslims and the people from north and south.Language came to be associated with the politics of religious identities from the end of the 19th century. But Mahatma Gandhi retained his faith in the composite character of Hindustani.

  • The subject matter of economics includes microeconomics and macroeconomics.
  • Microeconomics, studies the behaviour of individual economic units of an economy, like households, firms, individual consumers and producers etc. It does not study the economy as a whole.
  • Macroeconomics is the part of economic theory that studies the economy as a whole, such as national income, aggregate employment, general price level, aggregate consumption, aggregate investment, etc.
5. Distinguish between a centrally planned economy and a market economy.

Ans. Out of syllabus

6. What do you understand by positive economic analysis?

Ans. Out of syllabus

7. What do you understand by normative economic analysis?

Ans. Out of syllabus

Post your comments

Your mobile number will not be published.

View Comments

  • Muthalagu
  • 2020-August-10 13:04:53
10 A class
  • Vadde madhu
  • 2020-August-09 13:05:59
Hallo
  • Veeranna
  • 2020-August-04 18:04:29
1:1 2004
  • Eslavath Kalyan
  • 2020-July-29 13:13:11
Komatipalli kesamudram
  • Gumma pavan kalyan
  • 2020-July-27 19:15:47
Hall ticket
  • Rajudutta
  • 2020-July-21 14:09:35
Excellent solutions and easy to learn.
  • VAGEESHA
  • 2020-July-17 12:42:54
NICE JOB
  • Syed sayeed saaqib
  • 2020-July-17 09:17:31
10 th class marks
  • P.fairoz khan
  • 2020-July-17 09:17:26
My SSC result
  • Gangavarapu Ashok Reddy
  • 2020-July-16 18:48:26
10 the class 2020 markas
  • Kusi Mani kumaR
  • 2020-July-16 13:12:26
2008125010
  • suhailhajam
  • 2020-July-16 13:12:18
plz kindly MCQ question s
  • suhailhajam
  • 2020-July-16 09:23:15
plz kindly MCQ question s
  • Koripalli. Bindu ramya
  • 2020-July-16 09:23:07
Inter results second year
  • Faizan
  • 2020-July-15 19:05:41
Beautiful
  • K. Umesh Chandra
  • 2020-July-15 19:05:34
Please release 10th results
  • Surra naidu
  • 2020-July-15 18:11:06
S me result
  • Lakpathi
  • 2020-July-15 18:10:58
Cbse resuls
  • S.sravani
  • 2020-July-15 18:10:50
CBSE 10th class result
  • Gundrathi Mohan
  • 2020-July-15 18:10:35
S me results
  • Gundrathi Mohan
  • 2020-July-15 12:58:21
S me results
  • suhailhajam
  • 2020-July-15 12:02:02
plz kindly MCQ question s
  • chandar
  • 2020-July-15 12:01:55
chan
  • suhailhajam
  • 2020-July-15 09:56:17
plz kindly MCQ question s
  • Kaustab Roy
  • 2020-June-29 08:44:49
I want to explore everything
  • Anup
  • 2020-June-16 19:51:29
Workbook unit 1 exercise solution
  • Khushdeep Kaur
  • 2020-June-15 09:19:07
I want pdf of MCQ class 10th C.B.S.E
  • Saddam
  • 2020-June-09 15:24:13
Kindly s me 10 maths mcq question answer
  • SADDAM
  • 2020-June-08 14:24:07
SEND ME
  • Bed prakash
  • 2020-June-01 09:44:40
Mera result
  • palla sivaram
  • 2020-April-21 13:55:32
haiii
  • Dany
  • 2020-March-07 16:10:18
NCERT Solutions Very Good I Like It
  • laxman
  • 2020-February-17 15:31:16
good
  • Bhanusam.manjula
  • 2019-August-17 12:35:47
Ssc 2007batch regular halltichet number
  • Ramu
  • 2019-July-31 12:35:35
NCERT Solutions
  • Kalamata gowriswari
  • 2019-June-17 17:57:24
Open 10th result 2019ap
  • Nagra rayal
  • 2019-May-17 10:35:13
Yappudu 10th reselts
  • Yanati nagarani
  • 2019-May-17 10:20:31
10th result
  • NAGESWARA
  • 2019-May-11 18:30:50
How can see ssc ap 10th results
  • m.kalyani
  • 2019-May-11 18:30:36
10th result
  • Naveen
  • 2019-May-10 13:17:17
10th results
  • Sri kesav
  • 2019-May-10 09:58:50
Please tell me the correct date of AP ssc results
  • K. Sudhakar
  • 2019-May-10 09:58:43
Plz 10th result
  • V pawan durga sriniva
  • 2019-May-07 14:24:49
Please 10th cbsc results
  • V pawan durga sriniva
  • 2019-May-07 14:24:39
Please 10th cbsc results
  • Charan
  • 2019-May-07 14:24:21
Result ssc
  • Ayesha
  • 2019-May-07 14:24:17
At. What time did exam results will come?
  • Vadithya suresh
  • 2019-May-04 14:44:06
Results
  • VANKUDOTH pavan kalyan
  • 2018-May-30 10:16:07
Results
  • C H VAISHAVI
  • 2018-May-29 18:18:18
Cbse result by name
  • varunsai sanne
  • 2018-May-29 16:00:17
Xth results 2018
  • varunsai sanne
  • 2018-May-29 15:44:24
Xth results 2018
  • Yalagala Srihari
  • 2018-May-29 13:04:27
Exam results
  • Alpesh Dhamale
  • 2018-May-29 11:36:50
Nice article my baby wait for exam result i hope this year pass percentage may be increase
  • m. mohan rao
  • 2018-May-28 11:03:47
hi, s me cbse 10 class 2018 results
  • akshaya
  • 2018-May-26 10:22:07
at what time resilts are going to today
  • Velupala Ashwarya
  • 2018-May-15 11:01:52
My result
  • Ramu
  • 2018-May-12 16:09:34
good information