Ch 1Basic Concepts in Economics — Class 11 Economics, concept-first.

Economics is the social science that studies how individuals, households, businesses and governments make choices about scarce resources.

Once Economics is defined, the MSBSHSE Std XI syllabus introduces two different ways of classifying how the subject is studied: by the level at which it is analysed (microeconomics vs macroeconomics),…

A want is a desire for a good or service that gives satisfaction when fulfilled — it is the starting point of all economic activity, because it is wants that make resources scarce and choice necessary…

Before the Std XI Economics course moves to money, statistics and applied topics, a few basic terms recur throughout the subject and must be clearly distinguished.

Because resources are scarce relative to unlimited wants, every economy — whatever its size or the economic system it follows — must answer three central questions.

Scarcity means that the resources available to an economy (land, labour, capital, entrepreneurship, and time) are limited relative to the unlimited wants they must satisfy.