{"id":16999,"date":"2021-01-12T11:31:18","date_gmt":"2021-01-12T06:01:18","guid":{"rendered":"https:\/\/ncertsolutions.guru\/?p=16999"},"modified":"2021-01-25T17:50:10","modified_gmt":"2021-01-25T12:20:10","slug":"ncert-solutions-for-class-12-economics-chapter-1","status":"publish","type":"post","link":"https:\/\/ncertsolutions.guru\/ncert-solutions-for-class-12-economics-chapter-1\/","title":{"rendered":"NCERT Solutions for Class 12 Economics Chapter 1 Introduction to Macroeconomics"},"content":{"rendered":"<p>Detailed, Step-by-Step <a href=\"https:\/\/ncertsolutions.guru\/ncert-solutions-for-class-12-economics-hindi\/\">NCERT Solutions for Class 12 Economics<\/a> Chapter 1 Introduction Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.<\/p>\n<h2>Introduction to Macroeconomics NCERT Solutions for Class 12 Economics Chapter 1<\/h2>\n<h3><span id=\"Class_6_Science_Chapter_1_Food_Where_does_it_Come_From_Exercise_Questions_and_Answers\">Introduction to Macroeconomics Questions and Answers <\/span>Class 12 Economics Chapter 1<\/h3>\n<p>Question 1.<br \/>\nWhat is the difference between microeconomics and macroeconomics?<br \/>\nAnswer:<br \/>\nFollowing points explain the difference between microeconomics and macroeconomics:<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"text-align: center;\" width=\"50\"><strong>S.No.<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"292\"><strong>Microeconomics<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"287\"><strong>Macroeconomics<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"50\">1.<\/td>\n<td width=\"292\">Microeconomics facilitates decisions of individual households, firms or other organisations.<\/td>\n<td width=\"287\">Macroeconomics focuses on the economy as a whole.<\/td>\n<\/tr>\n<tr>\n<td width=\"50\">2.<\/td>\n<td width=\"292\">Microeconomics focuses on market forces of demand and supply and determines &#8216;equilibrium price levels.<\/td>\n<td width=\"287\">Macroeconomics focuses on increasing economic growth. It studies the changes in the national income and various other national level aggregates.<\/td>\n<\/tr>\n<tr>\n<td width=\"50\">3.<\/td>\n<td width=\"292\">Microeconomics takes a bottoms-up approach in analysing the economy.<\/td>\n<td width=\"287\">Macroeconomics takes a top-down approach in analysing the economy.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><img loading=\"lazy\" src=\"https:\/\/i1.wp.com\/ncertsolutions.guru\/wp-content\/uploads\/2021\/01\/NCERT-Solutions-Guru.png?resize=170%2C17&#038;ssl=1\" alt=\"NCERT Solutions for Class 12 Economics Chapter 1 Introduction\" width=\"170\" height=\"17\" data-recalc-dims=\"1\" \/><\/p>\n<p>Question 2.<br \/>\nWhat are the important features of a capitalist economy?<br \/>\nAnswer:<br \/>\nFollowing are the important features of a capitalist economy:<\/p>\n<ul>\n<li>There is private ownership of means of production.<\/li>\n<li>Production takes place for selling the output in the market with profit as the primary motive.<\/li>\n<li>Prices of goods and services are determined by market forces of demand and supply with minimum intervention by the government.<\/li>\n<li>Consumers are free to choose whatever they can afford.<\/li>\n<\/ul>\n<p>Question 3.<br \/>\nDescribe the four major sectors in an economy according to the macroeconomic point of view.<br \/>\nAnswer:<br \/>\nFollowing are the four major sectors in an economy:<br \/>\n(i) Household Sector: By household sector, we mean a group of individuals who purchase goods and services for consumption.<\/p>\n<p>(ii) Firm\/Production Sector: The production units are called firms, The firm sector includes all the\u00a0 units that buy factors of production from households.<\/p>\n<p>(iii) Government Sector: The role of the government sector includes framing laws, enforcing them and delivering justice. The government, in many instances, undertakes production apart from imposing taxes and spending money on building public infrastructure, running schools, colleges, providing health services, etc.<\/p>\n<p>(iv) External Sector: The external sector includes exports and imports of goods and services. Capital\u00a0 from foreign countries may also flow into the domestic country, or the domestic country may be exporting capital to foreign countries.<\/p>\n<p><img loading=\"lazy\" src=\"https:\/\/i1.wp.com\/ncertsolutions.guru\/wp-content\/uploads\/2021\/01\/NCERT-Solutions-Guru.png?resize=170%2C17&#038;ssl=1\" alt=\"NCERT Solutions for Class 12 Economics Chapter 1 Introduction\" width=\"170\" height=\"17\" data-recalc-dims=\"1\" \/><\/p>\n<p>Question 4.<br \/>\nDescribe the Great Depression of 1929.<br \/>\nAnswer:<br \/>\nThe period from 1929 to 1933 is known as the Great Depression. This period witnessed tremendous decline in the level of output and employment in the countries of Europe and North America. It affected other countries of the world as well. The demand for goods in the market was low, many factories were lying idle and workers were thrown out of jobs.<\/p>\n<p>During this period, unemployment rate in USA rose from 3 percent to 25 percent while aggregate output fell by about 33%. These events made the economists think about the functioning of the economy in a different way. In other words, we can say that macroeconomics was born as a result of the great depression.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Detailed, Step-by-Step NCERT Solutions for Class 12 Economics Chapter 1 Introduction Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation. Introduction to Macroeconomics NCERT Solutions for Class 12 Economics Chapter 1 Introduction to Macroeconomics Questions and Answers Class 12 Economics Chapter &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/ncertsolutions.guru\/ncert-solutions-for-class-12-economics-chapter-1\/\"> <span class=\"screen-reader-text\">NCERT Solutions for Class 12 Economics Chapter 1 Introduction to Macroeconomics<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[3],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>NCERT Solutions for Class 12 Economics Chapter 1 Introduction to Macroeconomics - NCERT Solutions<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ncertsolutions.guru\/ncert-solutions-for-class-12-economics-chapter-1\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NCERT Solutions for Class 12 Economics Chapter 1 Introduction to Macroeconomics - NCERT Solutions\" \/>\n<meta property=\"og:description\" content=\"Detailed, Step-by-Step NCERT Solutions for Class 12 Economics Chapter 1 Introduction Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation. 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