Economics Class 11 English

  CBSE Class–11 Economics NCERT Solutions Chapter-01 Microeconomics Introduction 1.   Discuss the central problems of an economy. Ans:  Every economy faces three central problems due to multiplicity of wants, scarce availability of resources and problems of choice. This scarcity challenges the best possible usage of these available resources to fulfil the unlimited demands. The three central problems of an economy are as follows: (a) Problems of allocation of resources. (b) Problems of fuller and efficient utilisation of resources (c) Problems of growth of resources. (a)  Problems of allocation of resouces : Every economy has limited resources which can alternatively be used for producing different goods and services. Every economy has to face three problems which we call allocation of resources. What to produce and in what quantities?  It is the problem of choosing the different items of goods and the quantities to produce with the available resourses. The very...

  CBSE Test Paper-01 Class – 11 Economics (Economy and central problems of an Economy) General Instruction: All questions are compulsory. Marks are given alongwith their questions. Socialist economy is a (1) Planned economy Mixed economy Profit oriented economy None of these Consider the following and decide which, if any, economy is without scarcity (1) The pre-independent Indian economy, where most people were farmers A mythical economy where everybody is a billionaire Any economy where income is distributed equally among its people None of these ‘Opportunity cost is not an actual cost’. Do you agree? (2) If production possibility curve shifts to the right, should it be parallel to the old one? (2) Why is production possibility curve called opportunity cost curve? (3) Explain how scarcity and choice go together. (3) State reasons why an economic problem arises. (4) How is ‘choice’ a core parameter in the study of economics? (4) “An economy always produces on but not ins...

  CBSE Class–12 economics Revision Notes  Micro Economics 02 Consumers Equilibrium & Demand Consumer :  is an economic agent who consumes final goods or services for a consideration. Utility:  is want satisfying power of a commodity. Total utility:  It is the total  satisfaction derived from consumption of given quantity of a commodity at a given time. In other words, It is the sum total of marginal utility. Marginal Utility:  It is the change in total utility resulting from the consumption of an additional unit of the commodity.In other words, It is the utility derived from each additional unit. Mu n  = Tu n -Tu n-1  Relation between total utility and marginal utility UNITS Mu Tu 1 10 10 2 8 18 3 6 24 4 4 28 5 2 30 6 0 30 7 -2 28 when Mu diminishes but positive Tu increases at a diminishing rate. when Mu is zero, Tu is maximum. when Mu is negative, Tu diminishes. Law of Diminishing Marginal Utility :  As consumer cons...