NCERT Solutions Class 12 Economics Introduction to Macroeconomics and its Concepts

NCERT Solutions Class 12 Economics Introduction to Macroeconomics and its Concepts. NCERT book for Economics in class 12 is strongly recommened by teachers and the CBSE and NCERT boards. Please download the NCERT solutions for class 12 Economics free in PDF made by teachers of the best schools in India. These solutions are carefully compiled to give detailed understanding of the concepts and also steps of solutions. The NCERT solutions are free to download in pdf format. Please refer to the download link below to download the pdf file and also refer to other chapters and subjects to get the solutions to Economics NCERT book questions and exercises.

Introduction to Macroeconomics and its Concepts

1. Describe the five major sectors in an economy according to the macroeconomic point of view.[3-4 Marks]

Ans: An economy may be’ divided into different sectors depending on the nature of study.

1. Producer sector engaged in the production of goods and services.

2. Household sector engaged in the consumption of goods and services.

Note: Households are taken as the owners of factors of production.

3. The government sector engaged in activities like taxation and subsidies.

4. Rest of the world sector engaged in exports and imports.

5. Financial sector (or financial system) engaged in the activity of borrowing and lending.

2. What are the four factors of production and remunerations to each of these called? [ 1 Mark]

Ans: 

3. What are the important features of a capitalist economy? [3-4 Marks]

Ans: Features of capitalist economy are:

1. Private ownership of land and capital.

2. Profit is the only motive.

3. Free play of the market forces of demand and supply.

4. Government looks after growth, stability and social justice in the economy.

4. Describe the Great Depression of 1929. [3-4 Marks]

Ans: The Great Depression took place in 1929 which adversely affected the developed economies of Europe and North America. It continued for 10 years. There was extreme fall in aggregate demand due to fall in income, which led to a vicious circle of poverty.

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