Economics · Class 11 Commerce
Ch 1Introduction to Micro Economics — Class 11 Economics, concept-first.
Economics as a systematic subject of study began with the classical economists of the eighteenth and nineteenth centuries. Adam Smith, in his 1776 work An Inquiry into the Nature and Causes of the Wealth of Nations, defined Economics as the science of wealth — a study of how nations produce, distribute and consume weal…
Key concepts
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Opportunity Cost
Opportunity Cost
Most relevant Q&A
- What is meant by 'scarcity' in Economics? Using an example, explain how scarcity makes choice unavoidable.Free
- A college student can either attend a 3-hour evening class or work a part-time job during those same 3 hours, earning ₹200 per hour. If she…Preview
- A farmer has 10 hours of labour time available each day, which he can devote entirely to growing wheat or entirely to growing vegetables. Wo…Free
- Define opportunity cost and provide an example.Preview
In previous exams
How often this chapter’s concepts have been examined — real appearance data, never estimated.
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning, Nature and Scope of Economics
Economics as a systematic subject of study began with the classical economists of the eighteenth and nineteenth centuries.
Wants, Scarcity, Choice and Opportunity Cost
Human wants are unlimited — as soon as one want is satisfied, another arises in its place, and new wants keep emerging as incomes rise and societies develop.
Micro Economics and Macro Economics
The term 'Micro Economics' comes from the Greek word 'mikros', meaning small. Micro Economics studies the economic behaviour of INDIVIDUAL units of an economy — a single consumer, a single household,…
Positive Economics and Normative Economics
Economic statements can be classified into two broad kinds, depending on whether they describe facts or recommend values.
Central Problems of an Economy
Because every economy faces scarcity — limited resources set against unlimited wants — every economy, whatever its size or level of development, must answer three central questions about how to use it…
Production Possibility Curve
The Production Possibility Curve (PPC), also called the Production Possibility Frontier (PPF), is a graphical device that shows the maximum possible combinations of two goods (or two categories of goo…
Methods of Economic Analysis
Economists use two broad logical methods to build and test economic theories.
Exercises
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- Q4What is meant by 'scarcity' in Economics? Using an example, explain how scarcity makes choice unavoidable.Free
- Q5Classify each of the following statements as Positive or Normative, giving a reason: (a) 'Unemployment in the country was 5% last year.' (b)…Free
- Q6Explain, with a suitable example, what is meant by the central problem of 'What to produce' in an economy.Free
- Q7Explain why the Production Possibility Curve is normally drawn concave to the origin, rather than as a straight line.Preview
- Q8What does a point lying (i) ON the Production Possibility Curve, (ii) INSIDE the Production Possibility Curve, and (iii) OUTSIDE the Product…Preview
- Q9State three factors that can cause an economy's Production Possibility Curve to shift outward, and explain briefly how each works.Preview
- Q10Distinguish between the Deductive Method and the Inductive Method of economic analysis, with an example of each.Preview
- Q11Compare Robbins' 'scarcity' definition of Economics with Marshall's 'welfare' definition. Why is Robbins' definition considered broader in s…Preview
- Q12A college student can either attend a 3-hour evening class or work a part-time job during those same 3 hours, earning ₹200 per hour. If she…Preview
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
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- Q1Who is the Father of Economics ? (a) Paul A Samuelson (b) Max Muller (c) Adam Smith (d) Karl MarxPreview
- Q2What are goods ? Name the kinds of goods.Preview
- Q3(a) Elaborate the Nature and Scope of Economics. OR (b) Explain the Sub-Divisions of Economics.Preview
- Q4"Economics is a study of mankind in the ordinary business of life" - It is the statement of : (a) Alfred Marshall (b) Adam Smith (c) Samuels…Preview
- Q5Thiruvalluvar Economic ideas mainly dealt with : (a) Poverty is the curse in the Society (b) Agriculture (c) Wealth (d) All of the abovePreview
- Q6Mention the classification of Goods.Preview
- Q7Name the Subdivisions of economics and explain any one of them.Preview
- Q8(a) Compare and contrast various definitions of Economics. OR (b) Explain the various sources of energy in Tamil Nadu.Preview
- Q9The process of reasoning from Particular to General is : (a) Positive economics (b) Deductive method (c) Normative economics (d) Inductive m…Preview
- Q10Author of "An Inquiry into the Nature and Causes of Wealth of Nations". (a) Lionel Robbins (b) Alfred Marshall (c) Paul A. Samuelson (d) Ada…Preview
- Q11Explain the scarcity definition of Economics and assess it.Preview
- Q12Define opportunity cost and provide an example.Preview
- Q13(a) Elaborate the nature and scope of Economics. OR (b) Explain the Public Transport system in Tamil Nadu.Preview
- Q14Who has given scarcity definition of economics ? (a) Robbins (b) Adam Smith (c) Robertson (d) MarshallPreview
- Q15"Economics is a study of mankind in the ordinary business of life" - It is the statement of : (a) Alfred Marshall (b) Adam Smith (c) Samuels…Preview
- Q16Define Micro-economics.Preview
- Q17Author of "An Inquiry into the Nature and causes of Wealth of Nations" : (a) Lionel Robbins (b) Alfred Marshall (c) Paul A Samuelson (d) Ada…Preview
- Q18Which theory is generally included under Micro economics ? (a) Employment Theory (b) Price Theory (c) Trade Theory (d) Income TheoryPreview
- Q19What are Goods ?Preview
- Q20(a) Elaborate on the nature and scope of Economics. OR (b) How are the ideas of Information and Communication technology used in Economics ?Preview
- Q21The process of reasoning from particular to general is (a) Deductive method (b) Inductive method (c) Positive economics (d) Normative econom…Preview
- Q22Distinguish goods from services.Preview
- Q23(a) Explain basic problems of the economy with the help of production possibility curve. OR (b) Explain the law of demand and its exception.Preview
More questions
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- Example 1A farmer has 10 hours of labour time available each day, which he can devote entirely to growing wheat or entirely to growing vegetables. Wo…Free
- Example 2An economy producing only Guns and Butter can achieve the following combinations when its resources are fully and efficiently employed: | Co…Preview
- Example 3Classify each of the following statements as belonging to Micro Economics or Macro Economics, giving a one-line reason for each: (i) The pri…Preview