CBSE Notes for class 11 th
Introduction : introduction to micro economics Micro Economics class 11th:English Medium NCERT Book Solutions
NCERT Books Subjects for class 11th Hindi Medium
introduction to micro economics
Chapter - 1.
Nature and scope of economics.
An economy is a system which helps to produce goods and services and enables people to earn their living.
Economic as a positive or normative science :
- ''Economics is a science and economics is positive science mean the same thing''
- ''Economics as an art and normative economics means two related but different things"
- It shows Cause and effect relationshisp,
- It investigates "what is", "what was", "what will" ?
- It dose not pass value judgements.
- It is not concerned with welfare propositions.
- This approach of economics.was propunded by lione robbins.
- Normative is derived from the word "norm" or ''standerd'' which implies ''what ought to be".
- It passes value judgements.
- It is concerned with welfare propositions.
- It decides standars which should be adhered to in achieving economic objectives.
- This approach was propounded by alferd marshall.
herce, economics is both a positive and normative Sciennce
Scope of Economics:
- It studies the economics issues of an individual unit like an individual consumer, producer or a firm.
- In other words, it studies the berhaviour of individual economic units.
- In this we use " bit by bit " approdach which means breaking a big problem into small parts and then study one bit at a time.
- It deals with the problem of alloction of resources.
- it is also known as the "price theory".
- some of the components of micro economics are:
1. theory of consumer behavior.
2. theory of production.
3. theory of product pricing.
- It studies the economic issues at a level of an economy as a whole.
- Under this variables are aggregat and relate to large groups of economic units.
- In other words, it studies economic units.
- Macro economics is also known as "income theory" or "aggregative economics"
- Some components of macro economics are:
1. National income.
2. Labour force and population.
4. Balance of payment.
Economic Problem -
It is a problem of selection of scarce resources for satisfying unlimited human wants.
Causes of Economic Problem -
- Resources are limited,
- Human wants are unlimited, and
- alternative uses of resources.
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