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Cost – CBSE Notes for Class 12 Micro Economics Introduction This chapter gives a detailed version of cost and its types, related numericals and the relationship between them. Cost In Economics 1. Cost of producing a good, in Economics is the sum total of all the, (a) Direct expenditure (actual money expenditure of a firm [...]
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Production – CBSE Notes for Class 12 Micro Economics Introduction This chapter gives a clear account of terms like Production function, short period, long period, fixed factors, variable factors, concepts like total product, average product, marginal product and their interrelationships. Law of variable proportion and its phases are studied with reasoning. Production Function (Short Period [...]
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Elasticity of Demand – CBSE Notes for Class 12 Micro Economics Introduction This is a numerical based chapter on elasticity of demand, price elasticity of demand and its measurements, also discussing the factors affecting it. 1. Elasticity of Demand: The degree of responsiveness of demand to the changes in determinants of demand (Price of the [...]
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Demand – CBSE Notes for Class 12 Micro Economics Introduction This chapter takes into account the demand and the factors affecting it, both at the personal and market level. It highlights the law of demand, movement along the demand curve and the related changes. Explanation for the downward slope in the law of demand and [...]
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Consumer Equilibrium – CBSE Notes for Class 12 Micro Economics Introduction This chapter consists of a detailed account of concepts of Utility, Law of Diminishing Marginal Utility, Budget line, Budget Constraint, Monotonic Preferences, Indifference Curve, Consumer Equilibrium in Cardinal (single and several Commodities) and Ordinal (indifference curve) Approaches. Utility 1. Utility is the power or [...]
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Introduction to Economics – CBSE Notes for Class 12 Micro Economics Introduction This chapter primarily deals with the Economy, Central problem of an economy and explains the production possibility Frontier along with their shapes, pertaining to the subject. It highlights introduction to economics and its branches, namely Microeconomics and Macroeconomics. A Simple Economy 1. Society [...]
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Balance of Payment – CBSE Notes for Class 12 Macro Economics Introduction This chapter gives a detailed account of balance of payment of an economy, it structure and categorisation into current and capital account. Thereafter explaining balance of trade and its differences with the balance of payment, autonomous items, accommodating items and their differences, disequilibrium [...]
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Foreign Exchange Rate – CBSE Notes for Class 12 Macro Economics Foreign Exchange And Its Related Concepts 1. Foreign exchange refers to all the currencies of the rest of the world other than the domestic currency of the country. For example, in India, US dollar is the foreign exchange. 2. The rate at which one [...]
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Government Budget and the Economy – CBSE Notes for Class 12 Macro Economics Introduction This is a descriptive chapter on government budget of Indian economy, wherein its objectives, importance, types, components, budget deficits and its types (Revenue, Fiscal, Primary Deficit) and their implications are studied. Chapter at a Glance Government Budget And Its Related Concepts [...]
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Excess Demand and Deficient Demand – CBSE Notes for Class 12 Macro Economics Excess Demand And Its Related Concepts 1. Excess Demand and Inflationary Gap: (a) When in an economy, aggregate demand exceeds “aggregate supply at full employment level”, the demand is said to be an excess demand. (b) Inflationary gap is the gap showing [...]