How to study Class 12 Macroeconomics

Princeton,NJ/ 360prwire/ November 22/

Board Exams come with a lot of pressure on students. In India, board exams play a very important role in a student’s life. Whether in choosing a stream or good college a good score in board exams is mandatory. Class 12 boards are the most stressful period for school students. To get into the best college it is very important to score well.

Economics is an interesting subject. This subject is introduced in class 9 which comprises basic knowledge about the Country’s economy. Later, in class 11 Economics is divided into two parts Microeconomics and Macroeconomics.

Microeconomics is the study of individual and business decisions regarding the allocation of resources and prices of goods and services.  Macroeconomics is the study of the decisions of countries and governments. The term analyzes entire industries and economics rather than individuals or specific companies. 

Exam Pattern 

Class 12 economic exams are divided into two parts- Part A and Part B i.e., microeconomics and macroeconomics. The macroeconomics syllabus consists of 5 units. Economics paper is for a total of 80 marks in which microeconomics carries 40 marks and macroeconomics is for 40. Marks are divided into the following units:

Unit 1: National Income and Related Aggregates – 10 marks

Unit 2: Money and Banking – 6 marks

Unit 3: Determination of Income and Employment – 12 marks

Unit 4: Government Budget and the Economy – 6 marks

Unit 5: Balance of Payments – 6 marks

Macroeconomics: Book and syllabus 

The most recommended book for Class 12 microeconomics is Sandeep Garg solutions Macroeconomics Class 12. It is the best book. All the topics are explained very well in easy language. This book is enough in itself, there is a need to refer to another book than this.

Let’s have a look at the syllabus:

Chapter 1: Introduction

The first chapter is about the basic concepts in macroeconomics: consumption goods, capital goods, final goods, and the difference between microeconomics and macroeconomics.

Chapter 2: National Income and aggregates 

This is the most important chapter of macroeconomics. It includes the Methods of Calculating National Income, Expenditure & Income Method, And Gross National Product (GNP), Net National Product (NNP), Gross and Net Domestic.

Chapter 3: Money & Banking

The important topics in the chapter are meaning and supply of money. And, Central bank and its functions (example of the Reserve Bank of India): Bank of issue, Govt. Bank, Banker’s Bank, Control of Credit through Bank Rate, CRR, SLR, Repo Rate and Reverse Repo Rate, Open Market Operations, Margin requirement.

Chapter 4: Determination of Income and employment

This is another important chapter of macroeconomics. It carries 12 marks. This chapter includes Aggregate Demand Curve, Propensity to consume and propensity to save (average and marginal), Shift of a Curve, and The Multiplier Mechanism.

Chapter 5: Government Budget and the economy 

This chapter carries 6 marks. It includes Measures of government deficit – revenue deficit, fiscal deficit, primary deficit, their meaning, revenue receipts and capital receipts, and revenue expenditure and capital expenditure.

Chapter 6: Balance of Payments

This is one of the easiest chapters of macroeconomics which carries 6 marks. The important topics of this chapter are Balance of Payments, Flexible & Floating Exchange Rates, and a Determination of exchange rate in a free market.

How to prepare 

The Commerce stream is more about practical subjects rather than theoretical subjects. So, students prefer to give much of their time to Accounts and Mathematics, which is good. But Economics is the subject if you give an hour in a day you would be able to score a perfect 100. Economics is an interesting and conceptual subject. Some students find it boring and difficult as it also contains numerical but those who understand the concept very well become the master of this subject.

Here are some tips that you can use to score well for the economics exam:

  • Understand the Concept

As mentioned earlier, Economics is a conceptual subject. If you understand the subject it will become easy and interesting. There is no need to cram the books. Learning the concept by applying day-to-day practical examples will make it easy to remember the concepts plus it will enhance the knowledge.

 For say, the Demand for supplementary goods: Coffee and tea are supplementary goods that are used in day-to-day life. If the people are demanding coffee more than tea. Then, the demand for coffee will increase more than the cost fee which will result in an increased price for the coffee than the tea.

  • Read Books

After understanding the topic by the school or coaching teachers also, reading it from the books will help to remember the concept more clearly. It will print in your mind. Learn all the definitions, differences, diagrams, formulas by heart.

  • Make your Notes

It is very important for subjects like economics to your notes. After completing a single topic, note down the important points and make diagrams. Write all the formulas on a single piece of paper so that it gets easy to revise at the time of examination. Making notes will sharpen the memory. Revise all the notes of all the week on Sunday. Notes are very important for revision because it is not possible to read the books the day before the exam, only important points need to be revised at that time.

  • Practice Numerical

Economics also comprises numerical questions both in microeconomics and macroeconomics. A numerical must come in board examinations. Students should practice more and more numerical questions.

  • Revise Diagrams

Other than the theoretical part and numerical question, diagrams, and graphs also play an important part in economics. To fetch good marks practice every diagram from the book.

  • Practice past papers

It is always advised to practice the past ten years’ questions. Sometimes, it is observed, Board repeats a few questions from the past. Practicing past question papers also tells you about important topics.

  • Give Mock tests

Giving mock tests will test your knowledge and understanding of the subject. By solving sample papers students would get a better understanding of an exam pattern and manage time effectively.