Sandeep Garg CBSE Class 12 Economics Solutions

Important Contents Covered in the Chapters of Sandeep Garg Economics Solutions for Class 12

Starting with microeconomics, here is a brief on the chapters included in the Class 12 syllabus.

Chapter 1: Introduction to Microeconomics

In the first chapter of this subject, students will learn about the basic concepts of microeconomics. For example, it contains scarcity, economic challenges, limitations, the definition of microeconomics and macroeconomics, PPF (Production Possibility Frontier). The chapter also includes a statement-based study on various economic concepts. 

Chapter 2: Consumer’s Equilibrium

In the second chapter of Sandeep Garg microeconomics class 12, students are introduced to the concept of consumer’s equilibrium. Consumer’s equilibrium means the total amount of satisfaction drawn by a consumer after consuming a particular product or service. Next, you will learn a brief explanation of total utility and marginal utility.

The Law of Diminishing Utility has also been discussed in this chapter along with its assumptions. The indifference curve is explained along with a chart. This lesson also includes MRS (Marginal Rate of Substitution).

Chapter 3: Demand

In the 3rd chapter of Sandeep Garg Economics Class 12 Solutions, students get the definition of demand. It is followed by determinants of demand, demand function, the law of demand, etc.

Chapter 4: Elasticity of Demand

The elasticity of Demand is the quantitative change seen in the quantity demanded by consumers as a result of an increase or decrease in the product price. The 4th chapter in Sandeep Garg Solutions Class 12 gives the formula to calculate the elasticity of demand.

Chapter 5: Production Function

Production function, variable factors of production, product definition, the law of diminishing returns, and the law of variable proportions are explained in this chapter.

Chapter 6: Cost

Topics included in this chapter are:

• Fixed Cost

• Variable Cost

• Opportunity Cost

• Average Variable Cost

• Marginal Cost

Chapter 7: Revenue

In the 7th chapter of Sandeep Garg Economics Class 12 Solutions, one learns about the following:

• Profit

• Producer’s Equilibrium

Chapter 8: Producer’s Equilibrium

State of the producer’s equilibrium and conditions required to achieve it has been thoroughly explained in this chapter.

Chapter 9: Supply

Supply, along with its determinants, MSS, market supply conditions, etc. is detailed in this chapter.

Chapter 10: Main Market Forms

In this chapter, you learn about the following market forms:

• Monopoly

• Oligopoly

• Perfect Competition

• Imperfect Competition

Chapter 11: Price Determination with Simple Applications

The last chapter contains notes on:

• Market Equilibrium

• Viable Industry

• Non-viable Industry

• Demand-Supply Relationship

Now coming to the macroeconomics section of Sandeep Garg Economics Class 12, the following chapters are included in its syllabus.

Chapter 1: Circular Flow of Income

The circular flow of income includes the following:

• The market for goods and services

• Households

• Markets for factors of production

• Firms or suppliers

The different phases in income's circular flow are also listed here.

Chapter 2: Basic Concepts of Macroeconomics

This chapter of Sandeep Garg macroeconomics class 12 covers the following concepts:

• Factors of Production

• Current Transfer

• Gross Investment

• Depreciation

• Capital Loss

Chapter 3: National Income and Related Aggregate

In this chapter, students understand the concepts of NDP (National Domestic Product), GNP (Gross National Product), GDP (Gross Domestic Product), etc.

Chapter 4: Measurement of National Income

In this chapter of Economics Sandeep Garg Class 12 Solutions, you get to know the different methods for calculating the national income of a country.

Chapter 5: Money

The contents covered in this chapter are:

• Barter System

• Double Coincidence of Wants

• Characteristics of Money

• Money Supply

• DDA or Demand Deposit Account

• Bank Money

Chapter 6: Banking – Commercial Banks and the Central Bank

Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are the most important topics of this chapter.

Chapter 7: Aggregate Demand and Related Concepts

The two basic concepts you must understand here are:

• Marginal Propensity to Save

• Marginal Propensity to Consume

Chapter 8: Income Determination and Multiplier

In the 8th chapter of Sandeep Garg Economics Class 12 solutions, students learn how to find out multipliers.

Chapter 9: Excess Demand and Deficient Demand

The following concepts are covered in the chapter:

• Excess Demand

• Inflationary Gap

• Deflationary Gap

• Margin Requirement

Chapter 10: Government Budget and the Economy

A budget is drafted based on:

• Revenue Deficit

• Revenue Receipt

• Revenue Expenditure

• Fiscal Deficit

• Primary Deficit

Chapter 11: Foreign Exchange Rates

This chapter teaches how different countries trade on their currencies. Important functions of the FOREX (Foreign Exchange) market have also been detailed here.

Chapter 12: Balance of Payments

The current account, capital account, the balance of trade, foreign investment, borrowings, transfer payments, etc. are considered while calculating the balance of payment.

For your upcoming board exam revisions, you can download the Sandeep Garg Economics Class 12 PDF.

How will Sandeep Garg Textbooks help a student?

• It is designed on the basis of the current CBSE syllabus.

• Vedantu provides you with free access to these textbooks.

• It contains clear solutions with precise answers to all kinds of questions including MCQs, short questions, and long questions.

• It is an important source of preparation and revision.

The difference between national income and the current income at a constant price

There are a lot of differences between national income and current income when the price is constant .This has been explained in a tabulated form.

Depreciation and the Capital Loss

It is indispensable for a student to understand their meaning and the differences. Sandeep Garg textbooks provide you with clear information and an in-depth understanding of both these concepts. They have been explained in a tabulated form.

Central Problems of an Economy

An economic problem generally refers to the problem of making choices that happens because of the scarcity of resources. It usually happens because people have unlimited desires but the means to satisfy that desire is limited. Therefore, satisfying all human needs is not possible with the help of limited means.

Causes of Economic Problem

• Scarcity of resources: Resources like labor, land, and capital are insufficient as compared to the demand. Therefore, the economy cannot provide a solution to everything that humans want.

• Unlimited Human Wants: Human beings’ demands and wants are unlimited which means it is very difficult to satisfy the demands and wants of humans. If a person’s one want is satisfied, they will start having new desires again and again and this process keeps on repeating. People’s wants are unlimited and keep multiplying, therefore, it is difficult to satisfy them with limited sources.