Most Important Formulas for CBSE Class 12 Economics Board Exam 2025

As you all know the subject of Economics is split in 2 parts one of which is Micro Economics (Indian Economics Development) and other is Macro Economics. Many students consider the former to be easy. However for many, Macro is easier because it has a lot of numericals and is entirely practical based.

Now that only 4-5 days are left of the exam to be commence, here is a must go through list of formulas of Economics at one place. And remember, do not compromise your preparations for economics paper because of maths!

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Recommended:

CBSE Class 12 Economics Sample Paper 2025 Download Link – Click Here to Download PDF

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Important Formulas for CBSE Class 12 Economics Board Exam

If you belong to commerce stream and are appearing for the economics examination then you might want all the formulas at one place to remember the same in a much more easier way. It is not wrong to say that the subject has an expansive list of formulas but once you retain them in your mind, then it will stay there forever. All you really need to do is revise them end number of times in a day and practice as much as numericals as you can. Glide below to check the complete list of formulae in Economics. You can check the same from images below.

Formula 1: Y=C+S

C = Consumption
Y = Income
S = Savings

Formula 2: AD = C+I

C = Consumption
I = Investment
AD = Aggregate Demand

Formula 3: AS=C+S

S = Savings
C = Autonomous consumption
AS = Aggregate Supply

Formula 4: APC = C/Y = 1- APS

APC – Average Propensity to Consume
C = Consumption
Y = Income
APS – Average Propensity to Save

Formula 5: APS = S/Y = 1- APC

APC – Average Propensity to Consume
S = Savings
Y = Income
APS – Average Propensity to Save

Formula 6: MPC = ΔC / ΔY = 1- MPS

MPC =Marginal Propensity To Consume
ΔC = change in consumption
ΔY = change in income
MPS = Marginal Propensity To Save

Formula 7: MPS = ΔS / ΔY = 1- MPC

MPC =Marginal Propensity To Consume
ΔS = change in saving
ΔY = change in income
MPS = Marginal Propensity To Save

Formula 8: C= C¯+b(Y)

c = Consumption
‾c = Autonomous consumption
b = Marginal propensity to consume
Y = Income

Formula 9: S= – C¯+ (1-b)Y

S = Savings
‾c = Autonomous consumption
b = Marginal propensity to consume
Y = Income

After Eco, you can focus on maths. For that too, CBSE has released class 12 maths sample papers.

How to remember Class 12th Economics Formulas?

The only way to achieve the said goal is to remember them at the tip of your finger and the only way in which you can do is by repetitive learning and revising.

• Take a small notebook and write all the formulae with it with a black pen.
• They should be classified into Macro and Indian Economics to avoid confusion.
• Revise them once in the morning, at night and whenever you feel time.

Besides sample papers, you should also check previous year CBSE question papers for class 12 board exams.

What is the Exam Pattern of Class 12th Economics?

• The question paper has 24 questions and all of them are compulsory.
• The Ques No 1 to 4 and 13 to 16 are 1 marker questions.
• The Ques No 5 to 6 and 17 to 18 are 3 marker questions.
• The Ques No 7 to 9 and 19 to 21 are 4 marker questions.
• The Ques No 10 to 12 and 22 to 24 are 6 marker questions.
• The Section A has Macro Economic Questions
• The Section B has Indian Economics Questions

What is the syllabus of CBSE Class 12th Economics Exam?

The CBSE Class 12th Question syllabus as stated above is classified into Indian Economics and Macro. The question paper is also entirely based on NCERT and thus one should read and practice from it thoroughly. Below given is the chapter wise syllabus of Economics subject.

Indian Economics Development

• Development Experience (1947-90) and Economic Reforms since 1991
• Current Challenges facing Indian Economy
• Development Experience of India – A Comparison with Neighbours

Introductory Macro Economics

• Introduction
• National Income Accounting
• Money and Banking
• Income Determination
• Government Budget and Economy
• Open Economy Macroeconomics