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Karnataka Class 12 Commerce Economics Textbook Solution For 2017 – 2018 Exam Preparation

Karnataka Class 12 Commerce Economics Textbook Solution For 2017 – 2018 Exam Preparation

Karnataka Class 12 Commerce Economics Textbook Solution :  Karnatak University (Kannada: ಕರ್ನಾಟಕ ವಿಶ್ವವಿದ್ಯಾಲಯ) is a state university located in the city of Dharwad in the state of Karnataka in India. It was established in October 1949, and officially inaugurated in March 1950. The campus spans 750 acres (3 km²). D. C. Pavate was the first official vice-chancellor from 1954 to 1967. The rapid development of the institution is credited to him.

The university was recognized with the “Potential for Excellence” by the University Grants Commission. The university is the second oldest university in the state of Karnataka after the University of Mysore. The Karnatak university once used to serve most of the Karnataka region including Dharwad, Belagavi, Uttara Kannada, Bijapur, Gulbarga, Raichur, Bidar and Bellary. until the 1980s (Manipal Institute of Technology and the Kasturba Medical College of Manipal were affiliated with Karnatak University at Dharwad and all degrees were awarded by Karnatak University in between the years from 1953 to 1965)

Karnataka Class 12 Commerce Economics Textbook Solution For 2017 – 2018 Exam Preparation

Karnataka Class 12 Commerce Economics Textbook Solution : Karnataka Class 12  This section deals with Commerce education in India after Class 12. Commerce is one of the most important streams of education in India after Science. Some students even opt commerce as the first choice after Class 12. Commerce in its broad sense is the exchange of items of value or products between persons or companies and any such exchange of money for a product, service, or information is considered a deal of commerce. Over the years, importance of commerce as a stream has increased with the integration of the world economy.

Karnataka Class 12 Commerce Economics Textbook Solution For 2017 – 2018 Exam Preparation

Karnataka Class 12 Commerce Economics Textbook Solution :  Economics (UK English: /kəˈnɒmɪks/, /ɛkəˈnɒmɪks/; US English: /ɛkəˈnɑːmɪks/, /ikəˈnɑːmɪks/) is “a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services”.

Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes basic elements in the economy, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the entire economy (meaning aggregated production, consumption, savings, and investment) and issues affecting it, including unemployment of resources (labour, capital, and land), inflation, economic growth, and the public policies that address these issues (monetary, fiscal, and other policies).

Karnataka Class 12 Commerce Economics Textbook Solution For 2017 – 2018 Exam Preparation

Karnataka Class 12 Commerce Economics Textbook Solution :  Questions in textbooks can quite often be perplexing. To address this need, our experts have designed step-by-step solutions to all questions in your textbook. These detailed solutions serve as an invaluable aid while students do their homework and prepare for their exams. They also function as a catalyst for students to understand concepts better.

  • Help in exam preparation.
  • Detailed solutions for all questions in a textbook.
  • Prepared by experts.
Text Book Name

Economics

FREE NCERT Solutions for class 12-commerce Economics – Microeconomics
FREE NCERT Solutions for class 12-commerce Economics – Macroeconomics

NCERT Solutions for class 12-commerce Economics – Microeconomics

Chapter 1 – Introduction
Chapter 2 – National Income Accounting
Chapter 3 – Money and Banking
Chapter 4 – Income Determination
Chapter 5 – The Government: Budget and the Economy
Chapter 6 – Open Economy Macroeconomics

NCERT Solutions for class 12-commerce Economics – Macroeconomics

Chapter 1 – Introduction
Chapter 2 – Theory of Consumer Behaviour
Chapter 3 – Production and Costs
Chapter 4 – The Theory of the Firm under Perfect Competition
Chapter 5 – Market Equilibrium
Chapter 6 – Non-Competitive Markets

Karnataka Class 12 Commerce Economics Textbook Solution For 2017 – 2018 Exam Preparation

Karnataka Class 12 Commerce Economics Textbook Solution : The best way to deal with commerce subjects is to practice solving as many sample papers as possible and having your concepts clear as the subjects comprise both short and long answer type questions.

 Karnataka class 12 commerce economics best books:

The Textbooks Prescribed:

  • Handbook of Economics
  • SAMPLE PAPERS ECONOMICS(CLASS-12)
  • Introductory Microeconomics
  • Introductory Macroeconomics
  • Introductory Microeconomics and Macroeconomics
  • NCERT Class 12 Textbooks – All Subjects Commerce Major English Medium
  • Handbook of Accountancy
  • SAMPLE PAPERS BUSINESS STUDIES (CLASS 12)
  • Sample Papers Accountancy
  • Handbook of Business Studies
  • Accountancy : XII CBSE
  • CBSE Last 10 Year Solved Paper for Class XII
  • ISC Chapterwise Solved Papers Commerce class 12th
  • S.Chand’s ISC Commerce Vol. II for Class XII PB
  • S.Chand’s ISC Commerce Vol. II for Class XII Gupta C B
  • Business Studies
  • SAMPLE PAPERS ECONOMICS(CLASS-12)
  • Sample Papers Accountancy
  • Problems & Solutions in Accountancy, XII
  • Accountancy : For Class XII
  • ISC Commerce for Class 12
  • ISC Chapterwise Solved Papers Commerce Class 12th
  • ISC Textbook Concepts of Commerce Class 12

Karnataka Class 12 Commerce Economics Textbook Solution For 2017 – 2018 Exam Preparation

Karnataka Class 12 Commerce Economics Textbook Solution :

1. The origin of economics can be traced to Adam Smith’s book. An inquiry into the Nature and Causes of Wealth of Nature published in the year 1776.

2. Economics was used to mean home management with limited funds available in the most economical manner possible.

3. Economics has been defined in many different ways:

(a)Robbins emphasises that economics is a study of human behaviour, where there is a relationship between ends and scarce means and that the scarce means have alternative uses.

(b)Samuelson’s definition of economics is most comprehensive, relevant and accepted. The definition includes both the aspects of economics, i.e., distribution of limited resources and problem of economic development

Microeconomics and Macroeconomics

1. Microeconomics deals with the behaviour of individual decision-making units such as consumers, resource owners, etc. It is also called Price theory. 2. Macroeconomics deals with aggregate such as national income, aggregate consumption, etc. It is also called Theory of Income and Employment.

3. Both micro and macro economics are complementary and should be utilised for proper understanding of an economy.

Central Problems of an Economy

1. Basic economic problem is the problem of choice which is created by the scarcity of resources. It is also called problem of economising the resources, i.e., the problem of fuller and efficient utilisation of the limited resources to satisfy maximum number of wants.

2. Main causes of central problems are unlimited human wants, limited economic resources and alternative uses of resources.

3. Resources of factors of production can be natural like (land, air), human (i.e., labour), capital (like machines, building) and entrepreneurial (i.e., a person who bears risk).

4. Central problems facing every economy are:

(a)Allocation of resources

(i) What to produce and how much to produce?

(ii) How to produce? (iii) For whom to produce?

Production Possibility Curve and Opportunity Cost

  • It is a useful device to graphically explain the central problems of an economy. It indicates the various combinations of goods and services which can be produced by full and efficient utilisation of all resources of an economy.
  • It is downward sloping concave to the origin curve.
  • Slope of PPC is called MRT or Marginal Opportunity Cost. Slope of PPC is increasing showing that if a country wants to produce more of good X it has to give up increasing number of units of good Y it is called law of increasing marginal opportunity cost.
  • Any point inside the curve shows inefficient utilisation of resources and any point outside the curve is unattainable because of scarcity of resources.
  • Opportunity cost is the cost of alternative opportunity gives up. Production possibility curve is called opportunity cost curve at every point measures opportunity cost of good X in terms of good Y given up.

Production Possibility Curve and Central Problems

The production possibility curve solves five problems – what and how much to produce, how to produce, full utilisation of resources, economic efficiency and economic growth. All points on the curve solves problems of what and how much to produce, how to produce, full employment of resources and economic efficiency. Production possibility curve is unable to solve the economic problem ‘for whom to produce’.

KEY CONCEPTS

• Macro Economics: Its meaning

• Consumption goods, capital goods, final goods, intermediate goods, stock and flow, gross investment and depreciation.

• Circular flow of income

• Methods of calculation of national income

• Value added method (product method)

• Expenditure method

• Income method

• Concepts and aggregates related to national income

• Gross national product

• Net National product

• Gross and Net domestic product at market price and at factor cost.

• National disposable income (Gross and net)

• Private income

• Personal income

• Personal disposable income

• Real and Nominal GDP

• GDP and welfare

Macro Economics: – Macroeconomics is the study of aggregate economic variables of an economy.

Consumption goods:- Are those which are bought by consumers as final or ultimate goods to satisfy their wants. Eg: Durable goods car, television, radio etc. Non-durable goods and services like fruit, oil, milk, vegetable etc. Semi durable goods such as crockery etc.

Capital goods – capital goods are those final goods, which are used and help in the process of production of other goods and services. E.g.: plant, machinery etc.

Final goods: Are those goods, which are used either for final consumption or for investment. It includes final consumer goods and final production goods. They are not meant for resale. So, no value is added to these goods. Their value is included in the national income.

Intermediate goods intermediate goods are those goods, which are used either for resale or for further production. Example for intermediate good is- milk used by a tea shop for selling tea.

Stock: – Quantity of an economic variable which is measured at a particular point of time. Stock has no time dimension. Stock is static concept. Eg: wealth, water in a tank.

Flow: Flow is that quantity of an economic variable, which is measured during the period of time. Flow has time dimension- like per hr, per day etc. Flow is a dynamic concept. Eg: Investment, water in a stream.

Investment: Investment is the net addition made to the existing stock of capital. Net Investment = Gross investment – depreciation.

Depreciation: – depreciation refers to fall in the value of fixed assets due to normal wear and tear, passage of time and expected obsolescence.

Producers (firms) and households are the constituents in a two sectors economy. Households give factors of production to firm and firms in turn supply goods and services to households.

Karnataka Class 12 Commerce Economics Textbook Solution For 2017 – 2018 Exam Preparation

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