Class 12 Economics Formula and Diagram Master Sheet

A formula sheet should not become a collection of symbols you cannot explain. A diagram sheet should not become shapes you copy without understanding. Use this page to connect every visual or formula with the economic relationship behind it.

Prepared by Smit Sir · Updated 2026-09-08 · Free revision resource

Formula: name the variables and relationship

Before memorising a formula, say what each variable means and what the formula measures. In numerical practice, write the relationship first and substitute data only after confirming the units.

  1. Net Domestic Product = Gross Domestic Product − Depreciation.
  2. Gross National Product = Gross Domestic Product + Net Factor Income from Abroad.
  3. Net National Product = Gross National Product − Depreciation.
  4. At the standard conversion level, factor-cost aggregate = market-price aggregate − net indirect taxes.
  5. MPC = change in consumption ÷ change in income.
  6. MPS = change in saving ÷ change in income.
  7. In the simple consumption-saving relationship, MPC + MPS = 1.
  8. In the simple Keynesian multiplier model, k = 1 ÷ (1 − MPC) = 1 ÷ MPS.

Diagram: label before explaining

Axes, curves and important points should be labelled clearly. Then explain whether the change is a movement or shift, what caused it and what happens to the relevant economic variables.

Final-day revision: redraw, do not just reread

Cover the sheet and reproduce the key formulas or diagrams from memory. Check the missing labels and relationships, then repeat only the ones you could not recreate accurately.

Frequently asked questions

Should I memorise formulas without understanding them?

No. Understanding what the formula measures makes it easier to select the correct relationship in a numerical.

What makes an Economics diagram useful?

Correct labels plus a written explanation of the relationship or change shown.

How should I revise formulas before an exam?

Recall them from memory, check variables and units, then solve one representative problem for each weak area.

Editorial transparency

This guide links to material actually published on Smit Sir Commerce. Original practice is not presented as an official board paper. Students should use current school or board-prescribed material for final syllabus and exam requirements.

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