Introductor y
Microeconomics
Textbook in Economics for Class XII
2019-20
, ISBN 81-7450-678-0
First Edition ALL RIGHTS RESERVED
February 2007 Phalguna 1928
q No part of this publication may be reproduced, stored in a retrieval system
Reprinted or transmitted, in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise without the prior permission of the
December 2007 Agrahayana 1929 publisher.
December 2008 Pausa 1930 q This book is sold subject to the condition that it shall not, by way of trade,
January 2010 Magha 1931 be lent, re-sold, hired out or otherwise disposed of without the publisher’s
March 2013 Phalguna 1934 consent, in any form of binding or cover other than that in which it is
November 2013 Kartik 1935 published.
December 2014 Pausha 1936 q The correct price of this publication is the price printed on this page, Any
revised price indicated by a rubber stamp or by a sticker or by any other
December 2015 Pausa 1937 means is incorrect and should be unacceptable.
February 2017 Magha 1938
January 2018 Magha 1939
December 2018 Agrahayana 1940
OFFICES OF THE PUBLICATION
DIVISION, NCERT
PD 300T BS NCERT Campus
Sri Aurobindo Marg
New Delhi 110 016 Phone : 011-26562708
© National Council of Educational 108, 100 Feet Road
Hosdakere Halli Extension
Research and Training, 2007 Banashankari III Stage
Bengaluru 560 085 Phone : 080-26725740
Navjivan Trust Building
P.O.Navjivan
Ahmedabad 380 014 Phone : 079-27541446
CWC Campus
Opp. Dhankal Bus Stop
Panihati
Kolkata 700 114 Phone : 033-25530454
CWC Complex
Maligaon
Guwahati 781 021 Phone : 0361-2674869
Publication Team
` 70.00
Head, Publication : M. Siraj Anwar
Division
Chief Editor : Shveta Uppal
Chief Business : Gautam Ganguly
Manager
Chief Production : Arun Chitkara
Officer
Printed on 80 GSM paper with NCERT Assistant Editor : R. N. Bhardwaj
watermark
Production Assistant : Sunil Kumar
Published at the Publication Division by the
Secretary, National Council of Educational
Research and Training, Sri Aurobindo Cover, Layout and Illustrations
Marg, New Delhi 110 016 and printed at
Karan Printers, F-29/2, Okhla Industrial Nidhi Wadhwa
Area, Phase-II, New Delhi - 110 020
2019-20
, Foreword
THE National Curriculum Framework (NCF), 2005, recommends that
children’s life at school must be linked to their life outside the school.
This principle marks a departure from the legacy of bookish learning
which continues to shape our system and causes a gap between the
school, home and community. The syllabi and textbooks developed
on the basis of NCF signify an attempt to implement this basic idea.
They also attempt to discourage rote learning and the maintenance
of sharp boundaries between different subject areas. We hope these
measures will take us significantly further in the direction of a child-
centred system of education outlined in the National Policy of
Education (1986).
The success of this effort depends on the steps that school
principals and teachers will take to encourage children to reflect on
their own learning and to pursue imaginative activities and
questions. We must recognise that, given space, time and freedom,
children generate new knowledge by engaging with the information
passed on to them by adults. Treating the prescribed textbook as the
sole basis of examination is one of the key reasons why other resources
and sites of learning are ignored. Inculcating creativity and initiative
is possible if we perceive and treat children as participants in
learning, not as receivers of a fixed body of knowledge.
These aims imply considerable change in school routines and
mode of functioning. Flexibility in the daily time-table is as necessary
as rigour in implementing the annual calendar so that the required
number of teaching days are actually devoted to teaching. The
methods used for teaching and evaluation will also determine how
effective this textbook proves for making children’s life at school a
happy experience, rather than a source of stress or boredom. Syllabus
designers have tried to address the problem of curricular burden by
restructuring and reorienting knowledge at different stages with
greater consideration for child psychology and the time available
for teaching. The textbook attempts to enhance this endeavour by
giving higher priority and space to opportunities for contemplation
and wondering, discussion in small groups, and activities requiring
hands-on experience.
The National Council of Educational Research and Training
(NCERT) appreciates the hard work done by the textbook development
committee responsible for this book. We wish to thank the
Chairperson of the advisory group in Social Sciences, at the higher
secondary level, Professor Hari Vasudevan and the Chief Advisor for
this book, Professor Tapas Majumdar, for guiding the work of this
2019-20
, committee. Several teachers contributed to the development of this textbook; we are
grateful to their principals for making this possible. We are indebted to the
institutions and organisations which have generously permitted us to draw upon
their resources, materials and personnel. We are especially grateful to the members
of the National Monitoring Committee, appointed by the Department of Secondary
and Higher Education, Ministry of Human Resource Development, under the
Chairpersonship of Professor Mrinal Miri and Professor G.P. Deshpande for their
valuable time and contribution. As an organisation committed to systemic reform
and continuous improvement in the quality of its products, NCERT welcomes
comments and suggestions which will enable us to undertake further revision and
refinements.
Director
New Delhi National Council of Educational
20 November 2006 Research and Training
iv
2019-20
Microeconomics
Textbook in Economics for Class XII
2019-20
, ISBN 81-7450-678-0
First Edition ALL RIGHTS RESERVED
February 2007 Phalguna 1928
q No part of this publication may be reproduced, stored in a retrieval system
Reprinted or transmitted, in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise without the prior permission of the
December 2007 Agrahayana 1929 publisher.
December 2008 Pausa 1930 q This book is sold subject to the condition that it shall not, by way of trade,
January 2010 Magha 1931 be lent, re-sold, hired out or otherwise disposed of without the publisher’s
March 2013 Phalguna 1934 consent, in any form of binding or cover other than that in which it is
November 2013 Kartik 1935 published.
December 2014 Pausha 1936 q The correct price of this publication is the price printed on this page, Any
revised price indicated by a rubber stamp or by a sticker or by any other
December 2015 Pausa 1937 means is incorrect and should be unacceptable.
February 2017 Magha 1938
January 2018 Magha 1939
December 2018 Agrahayana 1940
OFFICES OF THE PUBLICATION
DIVISION, NCERT
PD 300T BS NCERT Campus
Sri Aurobindo Marg
New Delhi 110 016 Phone : 011-26562708
© National Council of Educational 108, 100 Feet Road
Hosdakere Halli Extension
Research and Training, 2007 Banashankari III Stage
Bengaluru 560 085 Phone : 080-26725740
Navjivan Trust Building
P.O.Navjivan
Ahmedabad 380 014 Phone : 079-27541446
CWC Campus
Opp. Dhankal Bus Stop
Panihati
Kolkata 700 114 Phone : 033-25530454
CWC Complex
Maligaon
Guwahati 781 021 Phone : 0361-2674869
Publication Team
` 70.00
Head, Publication : M. Siraj Anwar
Division
Chief Editor : Shveta Uppal
Chief Business : Gautam Ganguly
Manager
Chief Production : Arun Chitkara
Officer
Printed on 80 GSM paper with NCERT Assistant Editor : R. N. Bhardwaj
watermark
Production Assistant : Sunil Kumar
Published at the Publication Division by the
Secretary, National Council of Educational
Research and Training, Sri Aurobindo Cover, Layout and Illustrations
Marg, New Delhi 110 016 and printed at
Karan Printers, F-29/2, Okhla Industrial Nidhi Wadhwa
Area, Phase-II, New Delhi - 110 020
2019-20
, Foreword
THE National Curriculum Framework (NCF), 2005, recommends that
children’s life at school must be linked to their life outside the school.
This principle marks a departure from the legacy of bookish learning
which continues to shape our system and causes a gap between the
school, home and community. The syllabi and textbooks developed
on the basis of NCF signify an attempt to implement this basic idea.
They also attempt to discourage rote learning and the maintenance
of sharp boundaries between different subject areas. We hope these
measures will take us significantly further in the direction of a child-
centred system of education outlined in the National Policy of
Education (1986).
The success of this effort depends on the steps that school
principals and teachers will take to encourage children to reflect on
their own learning and to pursue imaginative activities and
questions. We must recognise that, given space, time and freedom,
children generate new knowledge by engaging with the information
passed on to them by adults. Treating the prescribed textbook as the
sole basis of examination is one of the key reasons why other resources
and sites of learning are ignored. Inculcating creativity and initiative
is possible if we perceive and treat children as participants in
learning, not as receivers of a fixed body of knowledge.
These aims imply considerable change in school routines and
mode of functioning. Flexibility in the daily time-table is as necessary
as rigour in implementing the annual calendar so that the required
number of teaching days are actually devoted to teaching. The
methods used for teaching and evaluation will also determine how
effective this textbook proves for making children’s life at school a
happy experience, rather than a source of stress or boredom. Syllabus
designers have tried to address the problem of curricular burden by
restructuring and reorienting knowledge at different stages with
greater consideration for child psychology and the time available
for teaching. The textbook attempts to enhance this endeavour by
giving higher priority and space to opportunities for contemplation
and wondering, discussion in small groups, and activities requiring
hands-on experience.
The National Council of Educational Research and Training
(NCERT) appreciates the hard work done by the textbook development
committee responsible for this book. We wish to thank the
Chairperson of the advisory group in Social Sciences, at the higher
secondary level, Professor Hari Vasudevan and the Chief Advisor for
this book, Professor Tapas Majumdar, for guiding the work of this
2019-20
, committee. Several teachers contributed to the development of this textbook; we are
grateful to their principals for making this possible. We are indebted to the
institutions and organisations which have generously permitted us to draw upon
their resources, materials and personnel. We are especially grateful to the members
of the National Monitoring Committee, appointed by the Department of Secondary
and Higher Education, Ministry of Human Resource Development, under the
Chairpersonship of Professor Mrinal Miri and Professor G.P. Deshpande for their
valuable time and contribution. As an organisation committed to systemic reform
and continuous improvement in the quality of its products, NCERT welcomes
comments and suggestions which will enable us to undertake further revision and
refinements.
Director
New Delhi National Council of Educational
20 November 2006 Research and Training
iv
2019-20
