CBSE class 12th Economics notes

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Introduction
A consumer is one who buys goods and services for satisfaction of wants.
The objective of a consumer is to get maximum satisfaction from spending his income on various
goods and services, given prices.
We start with a simple example. Suppose a consumer wants to buy a commodity. How much of it
should he buy? One of the approaches used for getting an answer to this question is 'utility' analysis.
Before using this approach, we would like to familiarize ourselves with some basic concepts used in
this approach,












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Hi I want the study material of Economics of 12th CBSE?

Ok, as you want the study material of Economics of 12th CBSE so here I am providing you the syllabus.

12th CBSE Economics syllabus

Part A: Introductory Microeconomics
Unit 1: Introduction 11 Periods
Meaning of microeconomics and macroeconomics
What is an economy? Central problems of an economy: what, how and for whom to produce; concepts of
production possibility frontier and opportunity cost.
Unit 2: Consumer's Equilibrium and Demand 34 Periods
Consumer's equilibrium - meaning of utility, marginal utility, law of diminishing marginal utility, conditions
of consumer's equilibrium using marginal utility analysis.
Indifference curve analysis of consumer's equilibrium-the consumer's budget (budget set and budget line),
preferences of the consumer (indifference curve, indifference map) and conditions of consumer's equilibrium.
Demand, market demand, determinants of demand, demand schedule, demand curve, movement along and
shifts in the demand curve; price elasticity of demand - factors affecting price elasticity of demand;
measurement of price elasticity of demand - (a) percentage-change method and (b) geometric method (linear
demand curve); relationship between price elasticity of demand and total expenditure.
Unit 3: Producer Behaviour and Supply 34 Periods
Production function: Total Product, Average Product and Marginal Product.
Returns to a Factor.
238
Cost and Revenue: Short run costs - total cost, total fixed cost, total variable cost; Average fixed cost, average
variable cost and marginal cost-meaning and their relationship.
Revenue - total, average and marginal revenue.
Producer's equilibrium-meaning and its conditions in terms of marginal revenue-marginal cost.
Supply, market supply, determinants of supply, supply schedule, supply curve, movements along and shifts in
supply curve, price elasticity of supply; measurement of price elasticity of supply - (a) percentage-change
method and (b) geometric method.
Unit 4: Forms of Market and Price Determination under Perfect Competition with simple applications.
31 Periods
Perfect competition - Features; Determination of market equilibrium and effects of shifts in demand and
supply.
Other Market Forms - monopoly, monopolistic competition, oligopoly - their meaning and features.
Simple Applications of Demand and Supply: Price ceiling, price floor.
Part B: Introductory Macroeconomics
Unit 5: National Income and Related Aggregates 32 Periods
Some basic concepts: consumption goods, capital goods, final goods, intermediate goods; stocks and flows;
gross investment and depreciation.
Circular flow of income; Methods of calculating National Income - Value Added or Product method,
Expenditure method, Income method.
Aggregates related to National Income:
Gross National Product (GNP), Net National Product (NNP), Gross and Net Domestic Product (GDP and
NDP) - at market price, at factor cost; National Disposable Income (gross and net), Private Income, Personal
Income and Personal Disposable Income; Real and Nominal GDP.
GDP and Welfare

12th CBSE Economics syllabus








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