Economics is an important chapter for class 12 students because it has a great influence on a person’s day-to-day life as a consumer or a worker. Studying economics is very important for students in the commerce field because economics is termed as the science which deals with the production, distribution, and consumption of goods. In simple words, it is the study of the forces of supply and demand. Economics allows students to use this concept in their day-to-day lives. Class 12 economics helps students in understanding the basic economic concept and introduces them to basic economic issues of the country.
The syllabus of class 12 economics is divided into two parts- Macroeconomics and Microeconomics. Macroeconomics studies inflation, unemployment, industrial production, and the role of government in them. The topics covered in this subject for class 12 are Money and Banking, Determination of income and employment, Balance of payments and national income, and related aggregates which make a total of 40 marks, and project work is 20 marks. Students can take help from Sandeep Garg Macroeconomics Solutions Class 12 for practising questions.
Microeconomics is the study of the behaviour of firms, consumers, and the role of government in it. This subject covers topics like consumer’s equilibrium and demand, producer behaviour and supply, and forms of market and price determination in class 12 and constitutes about 40 marks in total.
These two parts of economics are very much alike but they are different in many aspects and are actually interdependent to each other. Therefore, to score well in economics it is important to understand these two categories in detail.
Microeconomics – As mentioned above microeconomics studies the behaviour of firms, consumers, and individuals. It assures allocation of resources among various groups of individuals satisfying their needs. Microeconomics determines how individuals should spend their income and how much they should save. It also determines how much a firm should manufacture to sell and at what price. It also examines how a firm should expand, downsize or close its business.
Key concepts of microeconomics are:
- Demand, supply, and equilibrium
- Production theory
- Costs of production
- Labour economics
Macroeconomics- It is a branch of economics that deals with the economy at a huge scale and considers several issues of the economy. It covers many major areas of the economy like unemployment, poverty, general price level, total consumption, total savings, GDP (Gross Domestic Product), imports and exports, economic growth, globalization, etc. It discusses unemployment, poverty, and inflation and its possible solutions, and issues that cause speeding up or slowing down of the economy.
The important concepts covered under macroeconomics are:
- Capitalist nation
- Investment expenditure
Major differences between Micro and Macroeconomics-
- Microeconomics studies the economy at a small scale. It studies the economy of an individual, firm, or household. On the other hand, macroeconomics studies the economy at a large scale. Rather than focusing on the single unit, it focuses on aggregate units like national income, Gross Domestic Product, or GDP.
- Microeconomics focuses on the particular market segment of the economy whereas macroeconomics stresses aggregate economic variables covering several market segments.
- Microeconomics deals with issues like demand, supply, factor pricing, product pricing, production, consumption, and more. On the other hand macroeconomics deals with aggregates like national income, employment, money, and more.
- Microeconomics is basically applied to operational or internal issues. Macroeconomics is useful for environmental and external issues.
- Microeconomics is used in regulating the prices of a product alongside the prices of factors of production, mainly labour, land, entrepreneur, capital, within the economy. In contrast, Macroeconomics maintains firmness in the broad price level and solves the major issues of the economy like deflation, inflation, reflation, unemployment, and poverty as a whole.
- In microeconomics full employment is assumed in the society which is not at all possible. The fallacy of composition is involved in macroeconomics, which may not be true always because it is possible that what is true for a group may not be true for individuals too.
Micro and macroeconomics, are equally important to score well in board examinations. Scoring 100/100 in the CBSE class 12 economics board exam is not difficult and can be done by following a study plan. Here, we will discuss some effective study tips to score well in the CBSE class 12 economics examination.
- Economics is a subject that is difficult to learn by rote learning. Students should always understand the concepts deeply. It is advised for students to attend lectures with concentration and study with focus. Students should enhance their economic vocabulary by learning all the definitions and terms and using them in day-to-day life. A pro tip to understand a chapter well is to skim through the pages before the chapter is taught.
- Students should understand every topic in depth. For example, after studying microeconomics from NCERT students should strengthen their topics from studying from other books also. Students should move to the next topic only after fully understanding previously taught topics.
- Numerical questions are important for both micro and macroeconomics. Students should answer the questions by keeping the right data in mind, students should have knowledge of all the factors needed for the outcome to be optimal. Chapters carrying high weightage are the elasticity of demand and supply, revenues and costs, national income, etc. Practising from these chapters on a regular basis can help you score well in board examinations.
- Students are advised to make graphs anywhere required. Students should write their answers in points to enhance visibility and should give 15 minutes to scan the paper thoroughly before beginning the exam.
- Students are advised to make their own chapter-wise notes and should mark the concepts which they find difficult and clear them later with the help of a teacher. Make short notes and formula sheets for proper revision. Allocate equal time to every chapter and start solving questions that you find difficult while practising.
Economics is not a tough chapter and can be a scoring one if the basics are strong. Students are required to follow the above-mentioned tips to score well in the economics CBSE board examination.