NCERT Books for Class 12 Microeconomics

Economics: Microeconomics

Microeconomics and Macroeconomics are the primary types of economic analysis and both Microeconomics and Macroeconomics are concerned with the distribution of limited resources, examining how demand for specific resources interacts with the ability to supply those resources in order to determine how to effectively divide and allocate those resources among a large number of people. Microeconomics is the study of how individuals and businesses allocate scarce resources.

Microeconomics is a social science that analyses how circumstances and behaviours affect the distribution of resources and utilisation. It also explains why and how different items have different values, how individuals and businesses undertake efficient production and exchange and profit from it, and how people may efficiently coordinate and cooperate with one another. A microeconomist is interested in how the tax will affect supply in a particular market or how it will affect a firm's decision-making.

Introductory Microeconomics NCERT

Class 12 students are given an introductory understanding of relevant economic issues in this textbook. NCERT Economics Class 12 Microeconomics is divided into 6 chapters - 

(1) Introduction, 

(2) Theory of Consumer Behaviour, 

(3) Production and Costs, 

(4) Theory of Firm under Perfect Competition, 

(5) Market Equilibrium and 

(6) Non-Competitive Markets.

Moreover, Class 12 Microeconomics NCERT elucidates the common thread running through these chapters. Students are encouraged to give a cursory read of the Microeconomics textbook to understand the broad themes of the subject. 

Chapter 1: Introduction to Microeconomics 

NCERT Economics Class 12 Microeconomics first chapter starts with a broad understanding of the concept of Microeconomics, and what it entails. It indicates the forces in play with respect to consumer behaviour as well as interaction with firms. 

The concepts are explained with constraints that individuals experience, which eventually contributes to consumer behaviour. The central problem of the economy is discussed as the scarcity of resources and the problem of choice. The chapter deals with the organisation of economic activities and goes on to discuss the centrally planned economy, and market economy. Moreover, it explains points of difference between Macroeconomics and Microeconomics. 

Chapter 2: Theory of Consumer Behaviour

Chapter 2 of the Microeconomics textbook deals with the Theory of Consumer Behaviour wherein the concepts of utility, indifference curves and consumer budget are discussed. Related to these concepts, the Law of Diminishing Marginal Rate of Substitution is explained. 

The assumption made in this regard is that a consumer is a rational individual and retains well-defined preferences. Reading through this chapter can significantly improve your chances of scoring higher in your board exams. Do not forget to solve the exercise at the end of this chapter to gain additional insight into these topics.

Chapter 3: Production and Costs

Production carried out by producers or firms is at the core of Microeconomics. The production process requires various inputs such as land, raw materials, labour, machine and capital, among others. The production function of a firm relates to the relationship between the inputs required and output produced by a firm. The numerical representation of the production function represents the output levels for the different values of capital and labour.

Chapter 3 NCERT economics Class 12 Microeconomics explains the Law of Diminishing Marginal Product and the Law of Variable Proportions along with various Returns to Scale.

Chapter 4: The Theory of the Firm under Perfect Competition

Chapter 4 in Class 12 Microeconomics NCERT is on the Theory of Firm under Perfect Competition. To begin with, perfect competition is discussed where the market necessarily consists of a large number of buyers and sellers, and each firm produces and sells homogenous products. Moreover, the movement within and out of the market is free. The following concepts build on these attributes of perfect competition.

It deals with revenue, profit maximisation, and the supply curve of a firm. The short-run and long-run supply curves of a firm are represented graphically. The determinants of a firm’s supply curve include technological progress and input prices. 

Chapter 5: Market Equilibrium

A lesson in NCERT economics Class 12 Microeconomics also includes the concept of market equilibrium, touching upon excess demand and excess supply. Equilibrium is understood as such a situation where the plans of the firms in the market and the consumers perfectly match. The application of supply-demand analysis is found in the regulation of prices by the government of particular goods and services. The imposition of a price ceiling is common on certain necessary items, and the same may be fixed below the market-determined price. 

Chapter 6: Non-competitive Markets

The final chapter of Microeconomics Class 12 NCERT discusses non-competitive markets where entities operational have direct or indirect power to influence the price. Such a feature is not present in perfect competition. Monopolistic competition is an instance of a non-perfectly competitive market where there is one seller in the market.

Moreover, a commodity market may have a monopoly structure where such a commodity has no substitute. Its market price depends on the amount supplied by the monopoly firm.

Advice from Vedantu experts to excel in CBSE Class 12 Microeconomics:

• Create a passion for the subject:  No matter how hard you work, if you are not passionate about the subject, it will always feel like a chore. Remember that the more you pique your interest in the subject, the less anxiety you'll have during the preparation and exam period.

• Respect the Subject: Most students spend their entire day answering math and accounting issues, and they just study Economics for the last 2-3 months. Respect each subject because each one is unique and will contribute to your overall final grade. Even 1-2 hours per day for 4-5 days a week can be beneficial. 

• Knowledge of concepts is required:  You won't get good outcomes by just memorising the theory. First, get a thorough comprehension of ideas through Classes or self-study, and then prepare for the exam. Remember that clever work will only yield effective results if it is preceded by hard work.

• Take notes: The majority of students appear to understand topics from Classes, take notes, and then edit their notes. It will not only help you understand your concepts better, but it will also help you prepare for the exam's answer writing points.

• Test yourself: What good is a cricket match if you haven't practised on the net? Similarly, you must repeat the test to strengthen your weak regions. Never miss your unit tests, pre-boards, or other assignments. If possible, conduct a one-hour weekly test on a few topics. For Class 12 Microeconomics, solve some unique and difficult questions from the NCERT book. Vedantu provides free chapter-wise solutions to the chapters and many other online resources free of cost.

Why are NCERT Books Favoured by Students and Teachers? 

Even though NCERT books are the prescribed textbooks for CBSE, it has been favoured by teachers and students alike owing to their content and treatment of the subject matter. Here are a few aspects the set apart NCERT books from the rest –

• Greater Elucidation of Basic Concepts: The fundamental topics of a subject are given more focus in NCERT books. It ensures that students have a better understanding of the basics, which will eventually help them prepare for advanced topics. The syllabus also covers all such areas from which questions regularly come in the exam.

• Effective Presentation: The content is presented in a no-frills design format. Such a simple presentation helps in higher concentration retention while reading. Moreover, attractive illustrations help in drawing the attention of the students to any important aspect of the topic. Pictorial representation of the concepts with the help of diagrams and flowcharts help students to understand concepts better. 

• Emphasis on Problem-solving: All chapters in NCERT books include questions for students to answer based on the content of the chapter. It serves two major purposes. On one hand, it helps the students to understand in which manner the questions may be asked on a given topic, and on the other, they will gain a fair understanding as to the extent they have understood the topic. 

• Encouraging Self-study: The content is framed in such a manner that it encourages students to deliberate further on the topic, and perhaps, go beyond all that is required only for examination. Lucid explanation of topics helps students to have a better understanding.

Therefore, NCERT economics Class 12 Microeconomics books are indispensable for your preparations. Besides the impending board exams, these books can also help you crack several competitive examinations as well.  

NCERT Books for CBSE Class 12 Microeconomics PDF Download: Steps to download from Vedantu:

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Why Should you Opt for Vedantu to Ensure Optimal Exam Preparation?

In terms of exam preparation, Vedantu ensures that students hit the ground running. We will not only guide you through the process but also make relevant resources available on our website, such as NCERT book Class 12 Microeconomics PDF, for you to peruse. You will find various other materials such as past year question papers along with solutions available in our portal. 

To complement your study of the Microeconomics textbook, participate in our live interactive sessions for acquiring an in-depth understanding of the topic. It will take your preparation a notch higher, enabling you to score more in your examination.

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