NCERT Solutions for Class 12 Economics – Macroeconomics and Indian Economic Development question answers updated for session 2022-2023. Get here all the exercises question answers, important questions and MCQ – Multiple Choice Questions with explanation.
Class 12 Macroeconomics Chapter wise Solutions
1. Introduction
2. National Income Accounting
3. Money and Banking
4. Determination of Income and Employment
5. Government Budget and the Economy
6. Open Economy Macroeconomics
Class 12 Indian Economic Development Chapter wise Solutions
1. Indian Economy on the Eve of Independence
2. Indian Economy 1950-1990
3. Liberalisation, Privatisation & Globalisation
4. Poverty
5. Human Capital Formation in India
6. Rural Development
7. Employment: Growth, Informalisation and other Issues
8. Infrastructure
9. Environment and Sustainable Development
10. Comparative Development Experiences of India and its Neighbours

Class 12 Economics NCERT Solutions

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About Class 12 Economics Books and Solutions

Students have elementary knowledge of economics in class 10th. In class 11th CBSE board they are supposed to learn Microeconomic and Statistics. Microeconomics was study of economic variables at an individual level whereas Macroeconomics (which we study in class 12) is the study of aggregates like aggregate demand, aggregate supply.

In class 12th, the syllabus is divided equally (in terms of marks) into macroeconomics (40 marks) and Indian economics (40 marks). There are 5 units in Macroeconomics and 8 topics in Indian economic development. For the session 22-23, the topics infrastructure and poverty have been deleted from the syllabus prescribed by CBSE class 12th from Indian economic development.

Class 12 Economics Topics to be studied with Marks Allotted

Students are introduced to the topic money and banking (carrying 6 marks) in which we study the functions of money (reintroduced from section 22- 23) and limitations of barter system. The functions of the Central bank (The Reserve bank of India) are also to be studied. There are six major functions performed by a Central bank. One of the most important functions which has gained lot of publicity these days and is equally important from an examination point of view is the function of credit control by exercising monetary policies like – repo rate, CRR, SLR, open market operations, margin requirements.

    • It also studies how the economy functions by first preparing a road map called the government budget (6 marks).
    • We also study how to measure national income. The topic on measurement of national income carries 10 marks.
    • Determination of equilibrium level of national income and investment multiplier carry 12 marks.

The syllabus on Class 12 Macroeconomics concludes by studying balance of payment and foreign exchange determination (together, the weightage of these two topics is 6 marks).
The subject Indian economic development is broadly divided into three units containing 8 chapters. The beginning of Indian economic development is by studying the situation of the country at the time of independence and concludes with comparison of the economies of India, Pakistan and China.

Class 12 Economics Important Questions

Two topics namely measurement of national income and determination of equilibrium income/investment multiplier are topics which are application based and numericals carrying 6 marks each are generally asked from these two topics. The topic on determination of income has graphs also. Students are expected to labels the axes properly. Numericals can also be asked from the topic government budget and foreign exchange- but the chances are less as compare to the first two topics discussed at the outset.
So far as, theory questions are concerned, we shall provide a list in the ensuing pages. It is expected that the students practice these question/answers thoroughly. What questions on Indian economics will be asked is difficult to say – however, we have tried to suggest all time important questions.

Revision before Examination

Revision is the most important aspect of learning. As a general rule, students are expected to complete their syllabus by the end of November- assuming that the course commences on time in the first week of April. There should be two revisions before the final exams. At least, three model papers should be attempted and solved to measure the preparedness for the exam. These should also be evaluated by the subject teacher or tutor and the mistakes noticed should be rectified.

Class 12 Economics – Indian Economic Development

The second part of Economics for class 12th CBSE comprises of Indian economy development carrying 40 marks. Remember 20 marks are for the project file and the viva question at the end of the second term. As young adults, students are exposed to the economic system, government policies and the problems being faced by the Indian economy and how we faced them since the time of Britishers.
Broadly, the syllabus is divided into three parts, First part consist of Indian economy on the eve of independence, steps taken by our planners from 1950 to 1990 and economic reforms introduced in 1991.

The second unit in economic development consist of the important economics problems faced by Indian economy mainly, poverty, human capital formations, rural development, employment, infrastructure and sustainable development. Out of these topics, the topic poverty and infrastructure have been deleted by CBSE for 22- 23. The last unit consist of development experience of India with its neighbours Pakistan and China.

Important Topics for Class 12 Economics – Indian Economic Development

In chapter 1 we study about the functioning of Indian economy and different sectors at the time of independence. We study how Britishers almost demolished the Indian economy but by the grace of God they left behind good infrastructure which laid foundation for future.
In chapter 2, we study about the growth of Indian economy during the period of 1950 – 1990.
In chapter 3, The 3 main components of economy reform: Liberalisation, privatization and globalization are studied.
Chapter 4 CBSE students can skip this topic. (Poverty)
Chapter 5 Deals with the most important aspect of any economy namely, human capital and its formation.
Chapter 6 Deals with rural development, agricultural marketing and agriculture trading. The sub topic organic farming is important.
Chapter 7 Deals with employment and related issues.
Chapter 8 The topic infrastructure can be omitted by CBSE students.
Chapter 9 is related to environment and sustainable development.
Finally, chapter 10 is a comparison between economies of India, Pakistan and China.
So far as, the marking scheme is concerned different Boards have different marking schemes.

Chapterwise Important Questions for 12th Economics – Indian Eco.

Important questions
We are providing 3 of the most important questions in each of the 8 chapters.

    • Chapter 1. Indian economy on the eve of independence
      (a) Reasons for backwardness of agriculture on the eve of independence.
      (b) Positive contributions by Britishers.
      (c) State of the industrial sector and infrastructure on the eve of independence.
    • Chapter 2. Indian economy in 1950 to 1990
      (a) What are the periods of different five year plans and what were the priorities of the same?
      (b) Land reforms
      (c) The policy of import substitution.
    • Chapter 3. Economic reforms in 1991
      (a) Define the terms Liberalisation, Privatisation and Globalisation
      (b) Advantages and disadvantages of globalization
      (c) How did economic reforms boost the Indian economy?
    • Chapter 5. Sources of Human capital
      (a) Distinguish between human capital and human development.
      (b) Education sectors in India.
      (c) What is the state of human capital formation?
    • Chapter 6. rural development
      (a) How does organic farming contribute to good of the economy?
      (b) Write the brief note on agricultural credit.
      (c) Agriculture marketing strategies in India.
    • Chapter 7. Employment and related issues
      (a) What are the different types of employment prevalent in India?
      (b) Changing structure of employment/ occupational structure in India?
      (c) Steps taken by the government/ Government schemes for employment generation.
    • Chapter 9. Environment and sustainable development
      (a) The need for sustainable development.
      (b) The strategies for sustainable development
      (c) The efforts of global bodies for preserving the environment and to promote sustainable development.
    • Chapter 10. Comparative development experiences of India and its neighbors
      (a) The great leap forward movement of China
      (b) The demographic indicators of three countries
      (c) The strategies followed by the three countries during the development process.
12th Economics Revision before examination

For revising Indian economics, we suggest that the entire syllabus be broken up into four or five parts.

    1. The important years when some event took place. For example, economic reforms took place in 1991. The TISCO was establish in 1907.
    2. Important definitions like – liberalization, privatization, globalization, sustainable development, unemployment, human capital formation, human development etc.
    3. The short questions carrying three to four marks. For example, what are the benefits of organic farming? What are the argument in favour of subsidies?
    4. Long questions carrying more than four marks. For example, how did the British rule help the Indian economy? What are the different employment schemes of government of India?

Finally, three model papers must be solved. If the student has chosen a topic like sustainable development for project work, he/she must master the particular topic for viva.

How can a student prepare Economics in class 12th Exams?

Economics for class 12th is divided into two parts each carrying 40 marks. The Macroeconomics question is divided into 5 units and Indian economics development is divided into 8 chapters. There are two units mainly which contain numerical questions. These should be practiced regularly. Short notes of all important questions should be prepared and revised before exams.

How should a student prepare to score 100% marks in class 12th?

To score 100% marks in any subject, the first quality required is enthusiasm and willingness to work hard the correct way. There are approximately 150 main concepts in macroeconomics. These are: National income accounting and determination of income and employment. These carry 10 marks and 12 marks respectively. These should be carefully understood and at least 30 to 40 questions each must be solved. Your concerned teacher could help you in selecting these questions. The definitions of all important terms should be written at one place. In Indian economics, all chapters are unique in themselves. NCERT solutions should be thoroughly practiced. A week before the examination, three model papers should be solved and got evaluated from an eminent teacher.
It is usual to have a project work of 20 marks. The CBSE has given vast choice in selection of topics so you should be careful in choosing the topic. You should be able to answer any question (the viva question will be asked from the project file made by you).

What topics in Economics need more practice or continuous revision?

In Macroeconomics, units carrying numerical and graphs are very important. The three formulae of calculating national income is the heart of the chapter. Similarly, in the topic determination of income and employment, AD/AS approach, S/I approach, working of multiplier are the top most questions. In Indian economics, chapter 3 on economic reforms needs constant revision. The last topic of Indian economics namely a comparison between India and its neighbors is full of data like- growth rate, populations, capital formation, density of population, human development index etc. Therefore, that data has to be practiced in writing and committed to memory.

How should a student prepare or revise Economics class 12th a day before examination?

It is impossible to read the entire textbook and solve all numerical one day before exams. Ideally, divide the day into four sessions of two hours each as per your convenience.
Session 1: Revise all the concepts in Macroeconomics.
Session 2: Revise at least 10 to 15 questions on national income accounting, consumption function and savings function, investment multiplier etc.
Session 3: Revise your short notes prepare during the course of the year. The important among these would not exceed 40 to 50.
Session 4: just go through the previous 3- 5 years solutions to board’s paper.