NCERT Solutions for Class 12th Macroeconomics Chapter 1 – Introduction

National Council of Educational Research and Training (NCERT) Book Solutions for class 12th
Subject: Economics
Chapter: Chapter 1 – Introduction

These Class 12th NCERT Solutions for Economics provide detailed, step-by-step solutions to all questions in an Economics NCERT textbook.

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Class 12th Economics Chapter 1 – Introduction NCERT Solution is given below.

Question 1. What is the difference between Microeconomics and Microeconomics?

Answer : Difference between Micro and Macro Economics

S. No. Microeconomics Macroeconomics
1 Microeconomics studies economic
problems at an individual level
Macroeconomics economic studies problems at the level of an economy as
a whole.
2 Microeconomics is determined the output and price 10ran individual firms Macroeconomics is determined an aggregate output and general price level in tile whole economy.
3 Demand and supply are its main tools Aggregate demand and aggregate supply are Its mam tools
4 It assumes all the macro variables to be
constant as national Income, consumption, saving etc
It assumes that all tile micro variables to be constant as households, firms,
prices of Individual product etc.

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

Answer : Features of capitalist economy are

  1. It is an economic system In which no restriction is imposed by government and every individual is enjoying economic freedom.
  2. Factors of production are privately owned.
  3. Profit maximisation is prime consideration.
  4. Large number of buyers and sellers exist in the market and there is tough competition.

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

Answer : According to the macroeconomics an economy in classified Into the following four sectors.

  1. Household Sector This sector engaged In the consumption of goods and services. House hold spend their income on payment for goods
    and services purchased. payment of lax to government.
  2. Production Sector Tnis sector engaged in the production of goods and services. This sector makes payments tor factor services to households, taxes to the government, imports of the materials.
  3. Government Sector This sector engaged in such activities which are related to taxation and subsidies.

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