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NCERT Solutions for Class 12 Macro Chapter 1 - Introduction To Macro Economics

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Class 12 NCERT Solutions Macro Economics - Introduction to Macro Economics - Free PDF Download

Macroeconomics is a branch of economics that deals with the overall behaviour, structure, performances, and decision-making of an economy. Vedantu, a leading e-learning platform provides NCERT Solutions for Class 12 Macroeconomics Chapter 1 for students who are preparing for their Board examinations.


Class:

NCERT Solutions for Class 12

Subject:

Class 12 Economics

Subject Part:

Economics Part 2 - Macro Economics

Chapter Name:

Chapter 1 - Introduction To Macro Economics

Content-Type:

Text, Videos, Images and PDF Format

Academic Year:

2023-24

Medium:

English and Hindi

Available Materials:

  • Chapter Wise

  • Exercise Wise

Other Materials

  • Important Questions

  • Revision Notes

Access NCERT Solutions for Class 12 Economics Chapter 1 – Introduction (Macroeconomics)

1. What is the difference between microeconomics and macroeconomics?

Ans: The difference between microeconomics and macroeconomics are:

Microeconomics

Macroeconomics

Refers to the behaviour, choices, and incentives of individuals or individual enterprises.

Addresses the economy as a whole, including governments, companies, and regulatory bodies.

Mainly used for explaining customer behavior, price theory, and marketing principles.

Mainly used to account for overall market performance, unemployment, growth, and overall market forecasts.

Spearheaded by economists like Alfred Marshall.

Spearheaded by economists like J.M. Keynes.

2. What are the important features of the capitalist economy?

Ans: These are the major characteristics of capitalist economics.

  1. Competitiveness exists between producers and free enterprise is guaranteed.

  2. The market determines the price of the commodity in accordance with demand and supply.

  3. The productive resources are private.

  4. The main reason for producers is to maximise profit.

3. Describe the four major sectors in an economy according to the macroeconomic point of view.

Ans: They are the four most important sectors of the economy from a macroeconomic point of view.

External sector: The sector is committed to the export and import (external trade) of goods and services. If goods and services produced in this country are sold to the rest of the world, then that's an export. If goods and services are purchased from the rest of the world, then we are talking about imports.

Government: A state or government shall keep law and order, maintain growth and stability, and provide administrative services. The primary reason for a government is to undertake development projects like dams, roads, heavy industries that usually have long gestation periods. The government invests in education and the health sector and delivers these amenities at a insignificant cost. The purpose of any government is to serve, not to make a profit.

Firms: Enterprises are economic units that perform the output. They employ and organize production factors and undertake production processes to motivate the realization of profits.

Households: Households purchase goods and services for consumption and also provide factors of production such as land, labour, capital and entrepreneurship. Households supply the business's production market.                                         

4. Describe the Great Depression of 1929.

Ans: The Great Depression became a serious economic crisis that began in 1929. It began in the United States of America with the stock market crash and gradually spread into other countries of the world. The main cause of the crisis has been the decrease in aggregate demand due to underconsumption and over-investment. As a result of under-consumption and excessive investment, the stock of finished goods began to accumulate, resulting in a low price level and therefore a low level of profit. Money in the economy had been converted into unsold stock of finished products that lead to an acute decrease in employment and thus the level of income has fallen drastically.

The demand for commodities in the economy was so low that output was reduced leading to unemployment. In the United States, the unemployment rate had increased from 3% to 25%. The Great Depression has its own implications and importance in the economy, as it leads to the failure of the conventional approach to the economy. Those who believed in the market forces of demand and supply, opened the door to the emergence of the Keynesian approach. It was this incident that provided economists with sufficient evidence to recognize macroeconomics as a distinct sector of the economy.

Macroeconomics Chapter 1 Class 12 PDF

Skilled teachers with years of experience have prepared these Class 12 Chapter 1 Macroeconomics Solutions following the latest NCERT guidelines to cater to the need of students. Class 12 students who find it challenging to cope up with this relatively new and vast concept can easily take professional and friendly help, provided by Vedantu.

Macroeconomics Chapter 1 Class 12 PDF consists of questions that are specially prepared by proficient teachers to enlighten students on the concepts covered in Chapter 1 of Class 12 Macroeconomics. Also, students get to acknowledge the vital role this topic has on our present-day economy. After going through the study materials provided by Vedantu, students will be able to answer every question from this chapter. Students who want to ace in Macroeconomics in the Class 12 Board examinations can download chapter 1 of Macroeconomics Class 12 PDF from the official website and mobile application of Vedantu.

Economics Class 12 Chapter 1 Macroeconomics

The very first chapter of Class 12 Economics, “Introduction to Macro Economics” encompasses a thorough discussion of the concept of macroeconomics covering the introduction, emergence, and some other related theories of Macroeconomics.

The PDF of Ch 1 Macroeconomics Class 12 on Vedantu, revolves around four questions which are broad in nature. The answers to these questions are prepared by the veteran Vedantu tutors and reflect their years of experience, solely dedicated to building the next generation Economists.

Question 1:

The first question of the first chapter “Introduction to Macroeconomics” starts with differentiating Microeconomics from Macroeconomics. On the basis of 12 points, the answer to this question is well elaborated. Students learn almost every aspect of the concerned topic and get an overview of both Microeconomics and Macroeconomics in a nutshell.

Question 2:

The answer to the second question of Chapter 1 Macroeconomics Class 12 deals with the features of a capitalist economy. The answer is framed with different points, where students will learn the definition of a capitalist economy in the first part. Following this comes some examples of capitalist economy and famous quotes about the same. The next part comprises five points that discuss the essential features of a capitalist economy.

Question 3:

Question 3 introduces students to the four majors of an economy from the macroeconomic point of view. The question focuses on four key sectors, namely - Household sector, Government sector, Business sector, and Foreign sector that are responsible for expenditures on Gross Domestic Product (GDP).

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Question 4:

The answer to the last question provides a detailed discussion of the Great Depression of 1929. This answer discusses the causes that led to this economic downturn in the 20th century. Students also learn about the massive impact of the Great Depression on employment and thus led to the breakdown of the economy. Last but not least, the flowchart provided at the end of this answer summarizes the causes and effects of the Great Depression.

Chapter 1 Of Macroeconomics Class 12: Marks Weightage

Chapter Name

Marks Weightage

Introduction to Macro Economics 

4

This chapter has a weightage of 4 marks. Students can grasp the concepts covered in this chapter well by referring to the Solutions on Vedantu.

Advantages of NCERT Solutions for Class 12 Macroeconomics Chapter 1

Students who took the assistance of NCERT solutions for Class 12 Macroeconomics Chapter 1 find it helpful for various reasons.

  • These NCERT Solutions are prepared by following the latest NCERT guidelines.

  • Each and every question are handled by teachers who have years of experience in their respective subjects and thus know the tricks to approach a specific question.

  • Simple language and elaborate discussion of answers strengthen the basic concepts of students.

If you are preparing for the Class 12 Board examinations and got stuck in the very first chapter of Economics, you can always trust Vedantu as your exam help. NCERT Solutions for Class 12 Macroeconomics Chapter 1 has been the preferred study guide of students for several years.

Register today and download the free PDF now!

FAQs on NCERT Solutions for Class 12 Macro Chapter 1 - Introduction To Macro Economics

1. What are the Advantages of NCERT Solutions for Class 12 Macroeconomics Chapter 1?

Students who want to ace their Class 12 Board examinations can rely on the NCERT solutions without any second thought. Firstly, the solutions are framed according to the NCERT guidelines. Secondly, teachers who have years of experience in the field of Economics, prepare these NCERT Solutions that are bound to fetch more marks in the Class 12 Board examinations. Lastly, the simple language and methods of discussion of a topic like Macro Economics makes it easier for students to gain in-depth knowledge about the topics covered in the syllabus. Therefore, students who are willing to build a strong base in Economics will find the NCERT solutions helpful from every aspect.

2. What Does the First Chapter of Class 12 Economics Include?

The first chapter of Class 12 Economics introduces students with the fundamentals of Macroeconomics. Macroeconomics which is a branch of study includes regional, national, and global economics.


The chapter covers a thorough discussion of three main topics which comes under this broad section. The section offers a detailed introduction which starts with differentiating Microeconomics from Macroeconomics. The second topic focuses on the emergence of Macroeconomics. This section provides an elaborate discussion on the Great Depression. The last section enlightens students on the context of present book of Macroeconomics.


In short, students will be able to learn topics like GDP, unemployment rate, price indices, consumption, inflation, savings, investment, international trade, international finances and some other topics in this chapter.

3. Describe the Great Depression of 1929.

Great Depression of 1929 was the worst economic crisis and probably the longest and widespread economic depression of the 20th century. Originating in the United States of America when the stock market crashed, the Great Depression resulted in an era of poverty, unemployment, deflation and low profit. The reason which initiated great turmoil goes back to the increased supply and decreased demand, which resulted in a drastic fall in economy.


The Great Depression is important in several ways, as it points to the failure of classical approach of economics, which initiated the recognition of separate existence of Macroeconomics.

4. How come NCERT Solutions of Class 12th Macroeconomics is going to help me?

Macroeconomics is the study of a country's economic general behavior. It includes the structure, performance, and decision-making of an economy. Vedantu has an expert team working to help students with their studies continually. Skilled teachers with years of experience have prepared these Class 12 Chapter 1 Macroeconomics Solutions following the latest NCERT guidelines to cater to the needs of students.

5. Where can I get NCERT Solutions for Class 12 Macroeconomics of all Chapters in PDF Format?

If you want to download NCERT Solutions for Class 12 Macroeconomics PDF Solutions, you can follow these steps:

  • Visit the page NCERT Solutions for Class 12 MacroEconomics Chapter 1.

  • The next page will contain a list of exercises. Find the one for which you want the solutions and click on it.

  • It will redirect you to the next page where you will find the link to download for free.

These NCERT Solutions are provided on the Vedantu app as well at free of cost.

6. What is the First Chapter of Macroeconomics Class 12?

The first chapter of this subject is Macroeconomics. It gives an overview of our present-day economy. It discusses the concepts of macroeconomics covering the emergence of this subject. It deals with the occurrence and introduction. It also includes theories related to Macroeconomics. To sum it up, students will be able to learn topics like GDP, unemployment rate, price indices, consumption, inflation, savings, investment, international trade, international finances, and some other topics in this chapter.

7. Where are the questions in the Class 12 exam asked from?

Most of the questions asked in the CBSE board question papers are from NCERT textbooks only. The questions may be twisted but they are based on the concepts from the textbook. Avoid referring to too many books simultaneously as it may confuse you. Practicing CBSE sample papers can let you know your level of preparation for the upcoming board exams.

8. What does the NCERT Solution PDF of chapter 1 Macroeconomics Class 12  contain?

The PDF of Chapter 1 Macroeconomics Class 12 on Vedantu is structured around four major questions. The answers to these questions have been provided by seasoned Vedantu instructors and represent their years of expertise dedicated entirely to the development of the future generation of economists. We like to help our students in all the ways possible.