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CBSE Notes for class 11 th


Introduction Micro Economics class 11 in english Medium CBSE Notes | Page 2. The most popular cbse notes prepared by latest cbse and ncert syllabus in both medium.;

Introduction : Page 2 Micro Economics class 11th:English Medium NCERT Book Solutions

NCERT Books Subjects for class 11th Hindi Medium

Page 2 of 3

Introduction

 

Page 2

Central Problems of An Economy 

1. What to be produced?

  • It is related to "which goods should be produced and in how much quantity".
  • It is a problem of selection of goods for production.
  • An economy can produced different possible combinations of goods and services with given resources. because there has many types of goods for production like consumer goods, producer goods. capital goods, civil goods or defence goods.
  • If production of one goods is increases then less resources is available for other goods, because resources are limites and have alternative uses.

so because of it the question is arises "which goods should be produced and in how much quantity".

2. How to be produced?

  • It is related to "what techniques should be used for production".
  • It is a problem of choosing appropriate technique for production of goods.
  • there can be more than one technique for production of goods. first is labour intensive technique and second one is capital intensive technique can be used for production. 
  • labour intensive technique helps in creating employment while capital intensive technique helps to increase production capacity.

Since, both techniques are important so the question arises "what techniques should be used for production".     

3. Whom to be produced ?

  • It is related to "for whom goods should be produced".
  • It is a problem of distribution of income and selection of final user of final goods.  

 

 

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