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    17 views154 pages

    12th HSC Economics

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    cS Introduction to Microeco... [mworranr concerrs: | Microeconomics Mleroeconomics i the branch of moder econorls concerned wth the sy nv economia sed of comomy a whole rocconomics sth branch of mofern economics concerned with the + Microeconomic / ero Variables: The eoonomie arable of mero quanites are called ‘mlrecconiome / lero vartable, + Macroccenomle Macro Variables; The esoomie varabes of macro quaniies are called rmacyoecononile nao arabes eaneren ar A@LANGE | 1. Introduction + (1) Merosconomics and macrosconmics are te wo main brates of modern eco. The firs cote by Norwegian eons Ragnar Prise (2) The term mlcroreonamies i dered fom the Greek word "miko whieh means a small, ‘or malo par. THis, mieroeconomicn studies ‘eal, poral its ofan concn (2) The term macrocanoenies Is dered from the Greek word malros wich means large. Ts, macroeconomics ses the economy as whole 2. Meaning and_—‘Defintlons of, ‘Microeconomles + (1) Merosconamics the branch of economics concerned with the stidy of eenoene Dehaour (Of tndvdual econone wait such as tndial ‘conaumer, india poder or fie, the rice the indiduals o households ax consumers and Inaituals or firms as producers play thelr part In the working ofthe whole econo organs.” 8, Scope of Microeconomics: "Tue seope of leroeconomes Is ala consi to pre theory snd reaource allocation. The scope fof microeconomics Is explained. a the following ‘The Scope of Microsconomice __Pxplamaton 1 Thworyof (1) Explaioe—how the oods and sere are determined salves and spy 2. Theory of Factor (2) Explas how te] apa commodore mene rie / sori (2 acring sare et encom eaten meta nfctarremnpe stn fe eam es (2) Aconing 10 Pol ALR Lar ee -aerncoames cis fang atte ey | cei trogh marci twee see | ine tn they of ony 1 acorn Mc CES . 8. Theory of ware (2) eficeney a (31 overt economic ‘of Microeconomics : res of mlroeconerica i espaned iy concerned wih equ poston fan Importance 1. Bxplas how the pies of diferent products tnd various aciors of production are 2, Helpa in understanding the work ofa ee 3 Helps i explaining voriowsnepets of ore trade ke fects of tar, currency exchange rte, guns rom ternational dee. Helga in understending, valour complex canon sons wth tbe ely of econo ode 5, Help tusinessinen for akg business Aecsone ead 10 cont of producto, ‘eterminaton of prices of goods. axumtaton of utpat and prod. te. 6 Useful w goverment framing policies and ataning the goal of ‘Moca of resources and eronomlc . © < Scanned with CamScanner € — Introducti conemse | (1 flciemey tn prodction watare (2) eteney es Features of Microeconomics: The features of microncmomic x expe in te town ae Features of Mlrosconomcs ‘sich a particular household. swim |i nay omer wa pa guts ma ri ok wo Froston So nonempty | Ast rt qt pt ‘near to sre ‘cw et ete gen theca or conor, pte epson, inet pay pte cpt, et rr 2: Un ig ed ro ane Titer ees eatery neta |e Ge te come of aaa ey | ten ncn emit rete Compiton sop, Mpa Compete, [a tar ted peo os ae |" came smut poten eed mere 5. Importance of Microeconomics ‘The Importance of mleroconomic is explained the following able 1. Theory of income (1) icudes the wd si Emplorment of determination ‘eatin eve and empeyent (2) tncludes study consign uy ‘General ncuden the ion to Microeco. Tapertaace of miereesonenica | Explains how the pees of aerent products tnd vars factors of production ae determined mere conor Helps in explaing various aspects of oe, trade ke fects of tar carreney exchange rates, gu from internatiora trade, ete {Helps iw understanding various compen sconomie stations with the help of conn Helps businessmen fo anata business ‘tecsions related 10 cost of production, Aeterinaton of pies of goods, maximization of output and prot et Usehl to gnemment in framing econome ples and alain the gad of fen lotion of resouree and eronomie wel ace Provides baie forte condions of economic of uy Macroeconemies deals win the sty of qregntes covering the entire economy Its oncered wth oa employment atonal income. raional ouput. aggepe demand, agers suppby aqregte consumpton and. aggregate ang, total Investnent et, 1 an agape 12) Accord JL, Manse "Macroeconomis 12 that branch of economic which considers the relations between argeaggrepates such asthe solune of employment. total amount of savings 18) Avcordag 10” Prof Cart Shapiro, “Macroeconomics deals oth the funtoning of the economy as auto" 7. Scope of Macroeconomics : Mecrocenomice deals with the study of garegues covering the etre ecnonny. Therefore. the alien four theories shown I the flowing 8, Features of Macrocconomies : "Th etre f mncrocconoaes ba epained he ftowing abe ‘Feature of Macroeconomics cconomy ae aha easily of economy de agrees. ‘Aso known ab ‘Theory of Thcone and Empyment or spl cee Anais. he std of determination of eases for and ‘nceme and explores Based on general «qullbrhan ana takes imo. consideration the fun ‘rious economic variables. () < Scanned with CamScanner € — Introducti on to Microeco... ‘The Scope of _acroeconomles | 1 Theory of lacome’ = the wud fant Employment | of determination and remedies fr of atonal come au employment (2) tacts study consumption funeton ana ot [Tedudes the sty for Mactustons General Price eve, 2 Theory of General Pree Lev and Iason 3. Theory of Grow and Development| study of ‘underdevelopment poverty poor ‘developing | and strates scelerating grow nd development | the ‘or explanation of how the higher rate of rowenta im developed |leddes the icy of determination ot remtve shares of ent. wage interest ‘Macro Theo of [5 Helps to analyse the periormance of an] sconomy by een of Rational come ‘arlables with respect to the problems related Helps to shale the general level of 8, Features of Mecroceononles : “The features of macroeconomics explained | Fi Governed wth tbe of te sats ‘ccmomay a whole Ita sty of cory | |, wide meats: ‘Aso Town x Thcory of Income and tanpayent or sim icone Ants the sty of determination oases for and Temes for fats Ia eel of mata Income and exploment ate | [Belcan general equim als ad takes te cemederation the neon Ieitonship and lnterdependence”anond “Tes account of inedependeace etme grguie economic aren Uses hanping med to deal wih conan gro an dele. ‘Ses the deri a nse fr nd) emeefr change nea pe lee tips infra ulable conor poles to. promote economic growth, 12 frocrate employment ental lation, 19 fall te comomy ot of depression 9. Importance of Macroeconomics “The importance of macrosonomic pated site oubmng able "impo of xeroeconomies 1. Giese the facto of ere ‘ortabea in lrg and complex econ ‘Studies the caves of and remedies fr ||P acintons in maton Income, total ouput tne eye aa employment eve 3. Focuses upon the stay of mllonal tacome 4 ihipe to understand the causes of ad | peor and deretoping countries 10, TheDitference Between Microeconomics sand Macroeconomics : “Te dilerence between microeconomics and macroeconomic be explained withthe help of ‘te follwing table ployment and output nan econo. ppl. Indvual income. ec. ewe Pea ae oss Sa supply auloaal come. ee Dee ben Zt Bos ods © < Scanned with CamScanner € Introduction to Microeco Helps snaboe the performance of wn] 10+ TheDitference Between! econo by the esto tina Income and Feces upon the study of macroeconomic The dlference between mleroecmomes and ‘aries wi respect tthe prblene relied sieraeconemics ean be explated wth the Help of |_ oem. dhe tallorng tbe 7. Helps to amgee the geeral ive of sapien! stl ouput a econo a Mrosconomien Macrosconomles 1 Meaning A branch of economies sting the A branch of ezonomies swaying the behaviour ofa nt ofan economy, |bebvour of agentes of an economy [2 Subject Stady of tndivdal demand, individual | Stay of agirgate Geman, agra "Matter supply. vn nome. ee. supply nallonal income ee. 3. Scope! ‘Seperate po eee | f 3 i z mekye Taceyot Tred | aah gt || ent Prag, “sce met ucla reat ‘4 Importance Price determination cconoaie model Anaiais of uchations 8 economy. ling, business decsoas, ellen |eetinaton of manna income emeies or Mlocation of rescues, cheng econorie development. anays of general employment lee, ee (cise | © coone te correct option (1 Mark each) *() Thebranch of economies that deals with he lation of ese, (e) Eeonomeriee Options: (1) a, bande (2) aandd (8) Onlya (4) Nene of these + (2) Concept sted under miroreonenin. (o) Matis! come (b) General price lve * (8) Method adopted n mereeconomie amass (a) Lamping metodo) Agree metho {o) Sting method) euste metbod Options (1) a.canddd (2) a, band (}onye (a) Onlya * (4) Concepts studied under mieroeanomien. (6) Aaregate spply (e) actor peng (d) Produc peeing (a) Produet peng Options (1) bande (2) banda Options (1) a. bande (2) beard Babande (4) candd 9) Onyd — ts) ad cantd 151 Scope of macroeconomes (a) Consumption feton (by Investment function (edi dean (@) Employment ive, Options (1) «bond d (2) beand (1) (8) Cnty (2) 1) cand) (8) Oatye and e (8) (1) a. banda the odd words) + (1 Mark each) rl demand, Indust Supp ual Income, ace eel ev Hmploymet eve Determination of bt pricny, Theory of economic rowih lopment, Faclor Pricing, Theory of ry of economic row a development © © Give economic terme: (1 ark each) (1) ype of equibrium that explains the ‘arom ofthe entire economy. (2) The economia of macro quantities, (GA ype of equitbrum that explains the (4) The economia of miro quantities, (6) Reward o ap ‘Ans (1) Genealequirumn (2) Mcrocecomie varables(3) Pariaequlibenam|4) Microeconomic © Assertion and Reasoning type questions + (2 Mark each) (2) Asweetion A) Mleroecononies | comparatively narrower scope, Reasoning (R) : Microeconomics ceonomle beawolur of only tava eco < Scanned with CamScanner € (5) Scope of macroreonemies (@) Consumption function (6) Indiv demand Options (1) banda (2) beanda @ Onyd (4) One ‘Ans. (1) (8) Ontya 2) (4) cand (8) (3) Ontye 4) 1) a. band () (1) a. band © rina tne oda words) | mark each) (0) tnd Inada (2) Pree ee ployment evel, Determination of (3) Product pricing, Theory of econoeie growth tnd development, Factor Pricing, Theory of ‘sconemicwelfre (4) Theory of econemie grom and development ‘Tueory af income and employment, Macro heory of distribution, Theory of enone velire (5) Prom, Land, Labour Caplat ‘Ang. (1 Price level (2) Deternnaon of rent (3) Theory of economie growth and deropment *© Complete the correlation : (1 Mark each) (0) Microeconomic : Sting meer (2) aierocconomles: Tree» Macroeconomics (31 Macroecouomes: come an_exployment theory + Meroeconomce (4) aakros Macronconemies: 05 (6) General equliirtm Macroeconomics of product pricing ‘Theory of tor peng / (6) Parl equim, Introduction to Microeco Se (1A ype of equicium that explains the ‘uli of the entire econo. (1A. ype of quien that expins the (41 The economi variales of micro quantities ‘Ana (1) Genraleqpiram2) Macroceomomie ‘aribles(3)Farlegulitam (4) Mirocccmnie ‘arlable (6) Interest © Assertion and Reasoning type questions (Mark each) (a) Assertion. comparatively narrower sope Reasoning): Microeconomics (0) (a) True but) Fae (2) (a) Rae, but R) 6 Te orvecc explanation of @) (4 Boos (A) and (R) are Tue and RI Is not ‘he correct explanation of A) ‘Ans. (3) Boh (A) a (are Tewe and (8) 4 (he correct explanation of A) (2) Assertion (A) Macroeconomics 16 abo Reasoning (R) :Macrorconamics stes the (1) (A) True ut) Fase (2) (a False, but (Rt Tre (8) Bote (A) and (R) are Tue and (RW the correct explanation of (A) (4) Bote (A) and (RI are Tue and RI 1s not the correct explanation of ‘Ana, (1) (A) ts Trae, a(R Fala, © deny and explain the concept rom the ‘ven astatons: (1 Markeach) ~S) Gaur eolected the information about the income of «particular frm. ‘Aus. (A) Identified concept: 5 ton of concept: The stuty of (ep betowour oa parler witb statins be eter forces of economy known coms deals withthe sty of ada Fe soe int tly of ) Ramesh decided to take all decisions production, such what and how to entified ——_comcept Busines na fee market cconenty productlon cos, ee. tn ease of business detson 1 tee market economy there sno intervention bythe germment or ny ther agency. (3) Shabana pald wages to workers in her factory and Interest on her bank fos. ‘Ans. (A) Ident concept Payment of ctor price reward (@) Replanation of consept : The factors ‘repreneur are eset for the production of feds. These factors of producuon get rewards sn the form of ret, wages, nicest and prot espectvely fom the producer for parepating (@) Rajesh decided to count how many times the had to travel by sckahew in «period ‘Ans. (A) Identiied concept : stuis a @ < Scanned with CamScanner € © tentity and exptain the concepts fom the ‘ven Mastratlons: (1 Mark each) (1) Gaus collected the information about te income of «particular fe ‘Aus. (A) Mentiied concept: Stuy Indu econome ut. (@) Explanation of concept : The seul of conom behawour ofa particnar wnt by tclating the sty oft eoonome unt, For example, mleroecouomics deals wih te study of tna (2) Ramesh decided to take all deieons related to production, such as what and how to produce. ‘Ans. (A) Mentiied concept uses econ in fhe market economy (B) Replanation f concept: a ee market conomy, producer ha to make some decisions tn order to achiev efcteney tn predation. Sch ‘market economy. Te poser aso take Dashes flecslone regueding the price of the produc, Introduction to Microeco... ty the government or any other agency. (3) Shabans pald wages to workers in her ‘tory and terest om her bank ous. ‘Ans (A) Identified concept Payment of octor (By Baplanation of concept: The fats pods. TMese faces of production get rewards In the form of rent. wage, |) Rajesh decided to count how many times he had to travel by eckahaw in a period of ene ‘Aum. (A) Ideas 1B) Rxplanation of concept: vidual demand a quant oa partear commodo sersice demanded by a consumer al a gen pice ‘aurnga en period etme. Inkl demand = (Marks each) © Dining eeween the iting: (1) Microeconomics and Macroeconomics ‘Microeconomics I era 1 Meaning ‘According Maurice Dub, Meroecnoes Jack amieroacope sty of he economy: ‘According to rok Cast Shap, “Macroewonomes eats with the unetoning of Yue economy as 2. Scope The scope of meroeconomicsncades the theory of prot pricy teary of factor pict an theory Income and employment, theory of genera pice eel theory of anomie growth and dewopment and macro theory of distro, Slicing Method i ‘Lamping Method 1, Meaning Stiingmetind sametindusedymicroccenomics, | Lamping method is a method used by vided ito big lumps (oF sectors) for agpegve sity 2, nature og cto ie used to study he micro qunies | Lumping method ts wsed 1 study the macro Squibrium and General utr Parla Equa | equates of economic vrai (General Equiirium 1, Meaning Drum «ype of qubrum wed in | General equilibrium i 1ype of quorum 6 © < Scanned with CamScanner € Introduction to Microeco... (2) Slicing Method and Lamping Method: Stcing Method ‘Lamping Method 1. Meaning Stitngmethod isamelhadusedbymicrorconomics,| Lamping method ts a method used by ‘ana for an tensive ay. vided into big lasps (or sectors) for aaegve ‘Slicing method is used o study the micro quantiles | Lamping mod used wo sly the macro ‘Paral equitriam i ype of equim used in| Genera eli is pe of equim used Imieoeconomies, witch explains the equliiriam of mseroecomic, which explains the equi of Part equlbeim neglects the funciona relationship and interdependence berween the ‘conomie vartables by assuming ‘ther thay beg © Ansrer th olowing: (4 Marks each) | (0) plan the entre of microeconomics ‘us, forthe nse reer to. QI Anse thefoleingguestne nda (Note: nour pols are expected Wane) (2) explain the portance ot | ‘Ane. forthe ase reertoo: QS) Anser | the fling quent deta | te Anjou poli are expected ane) *(9) plan the nope of ‘Ane The ope of tncrecconomice Io ‘oows (2) Taeory of Income snd Repayment crores exe ho the ev fatal Income and emplayment te determined. 1 loo | cramines the enue for feat to eatoal_| Income and plo. To ander. the theories and states for aceleratny growth ax! development ter, als expan how the higher rate of poh wt tabi can be aleve (4) macro Theory of Distribution Macroeconomics deals with determination of rela shares of rious sot eases tm he tla atonal income Macro theory of dstribtion dels lave shares of ea, wages. eral ane | ‘he total national nec {brie about the historia review "The Mork reve of mirocconmic an_| ae wth the Be ofthe fellow pats leroeonomle approsch is relatively a apo Org ofthis apprasch ean eed back tern a caslel economies, | ‘Smith, “The Faer of Economic’ in| Froronomie approach alo fond tn the of David Reardon JS. Mil © CGeueral equliienin assues te faneional ‘elatonship and iterdepontence betwee concmie arkables by assuming “every, depen on everingelae determination of the lvl of non Income and employment it also sues the consumpsion fetion, testment faction and trade eles Macroccnonice studies the tntereatonshp teen the evel of outpt,maoal ncome and the employment evel and suggests pales to sate the problems related to these mae variables (2) Theory of General Price Level and Intaton : Nacrocconomies shows how the geeral Price level determined and further explana what | eauses uctuatons nH, The deoey of general Price level ste the cases and effec of nflaton sau depresston ant suygestseconome polices to (9) Theory of Growh and Development nderdeveopment and poverty in pr counties 5 well as deelping counres and sugest (8) Microeconomics studies how a particular consumer reso atta maximum station ad thw a particular prednce rest tan man Prot Maeroecanoes doesnot ince the sty ofthe large agrees. Thus, croecououaes Is ‘ot agrepve but sina mare, Therefore, the scope of mleroocnones i nat ted! ba ie td (2) Macrosconomles dose with the study of Individual behavior ‘Ans. No, 1 dsagre wih ths statement Reasons (1) Macroeconomics does not sy te tndvdval economic wat wach an partelar consumes, indvdinl demand. particular sel, Individual supply price determination of putclar so. ee. (2) Microeconomes studies individu te and deals wth ow a pare ain muna ssaeton ad How a < Scanned with CamScanner € theores and strategies for aceeratng spowh nd deepsea ther, Halo expla how the higher rat of rom wl stably ean be aleve (4) Macro Theory of istebution + Macroeconomics deals with determination of wt the relate shares of rent, wages ttre and Profi nthe total mana inccne (d) We i Beef shout the historic! review ‘Aan. The Hse reve of mierotcnnnes ca be explained withthe help ofthe following pnts (2) Microscmomie approach is telavely leadidoual approach. Orn of ds approse ean be traced back to rn of las economia (2) Adar Sah “The Father of Renmei is wel known book ‘Well of Nats lowed meroeconomie approach (3) Merosconomieapprosch is lo found in the vrsuags of Dud Ricardo ad JS. Ml (4) Dr Aled Marshall isn fat conser fas the real architect of microeconomics, He fa hs book ‘Pringles of Economies sed ‘marge principle and enthroned the concept (6) Prot gos. J. R Wicks, Prof: Samucion ‘ether economists who have parcpated ta the ‘development of meroconce. (© otate with seasons whether you agree oF ‘sage with the following sentences: Reasons: (1) The term ‘mleroeeonomies Ie erie rom the Oreck word nikros which means (2) Meroscoomies studies the economic cvour of partial owsehold, idan fe india demand, tndivdual supply, india Income, pie ofa preter produ ee Introduction to Microeco... (2) Meroscnomics studies how a partclar conaumter tes o allan mas stefaton and Profit Mlreccoornce doce not ice the stil ofthe Inge aggregies. Thus, muroeconones 18 ‘ol agen bu in nda nature, unite! ited ‘Aus. No, disagree wih his statement Reasons :(1} Macrocconomice does no sty the indiaduat economic wnt such as particular consumer, indeval demand, partiular seller, Indl supp pre detrmaton of parti ‘pad, te ‘unite and dele with how a particular consumer ‘reducer atin maximum prot (2) Macroeconomics studies the economic Dbchaioar of gets, their relaocship, tier erdependence, their

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