Class 12 Economics — Chapter 1: Introduction

What you'll learn

• ▸Microeconomics vs. Macroeconomics
• ▸Aggregate Economic Variables
• ▸Economic Agents
• ▸Rationale for Macroeconomics
• ▸Macroeconomic Decision Makers
• ▸The Emergence of Macroeconomics
• ▸The Classical Tradition

Chapter Summary

--- PAGE 1 --- Chapter 1 12105CH01 Introduction You must have already been introduced to a study of basic microeconomics. This chapter begins by giving you a simplified account of how macroeconomics differs from the microeconomics that you have known. Those of you who will choose later to specialise in economics, for your higher studies, will know about the more complex analyses that are used by economists to study macroeconomics today. But the basic questions of the study of macroeconomics would remain the same and you will find that these are actually the broad economic questions that concern all citizens – Will the prices as a whole rise or come down? Is the employment condition of the country as a whole, or of some sectors of the economy, getting better or is it worsening? What would be reasonable indicators to show that the economy is better or worse? What steps, if any, can the State take, or the people ask for, in order to improve the state of the economy? These are the k…

Practice Questions from this Chapter

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1. Explain inflation simply. Get Solution →
2. Compare micro and macroeconomics. Get Solution →
3. How do economies grow? Get Solution →
4. Who is regarded as the founding father of modern economics according to the chapter? Get Solution →
5. What is the title of John Maynard Keynes' celebrated book published in 1936 that led to the emergence of macroeconomics? Get Solution →
6. What does the term 'micro' in microeconomics mean? Get Solution →
7. According to the text, what are 'economic agents'? Get Solution →
8. What was the dominant school of economic thought before John Maynard Keynes? Get Solution →

Did you know?

• 💡 During Germany's hyperinflation in 1923, money became cheaper than wallpaper.
• 💡 The country of Bhutan measures its national success using Gross National Happiness.
• 💡 The global economy today is worth over 100 trillion US dollars each year.
• 💡 Ancient Romans paid their soldiers with salt, which is where the word "salary" comes from.
• 💡 One in every three jobs in the world is related to agriculture.

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