Chapter-Introduction Micro Economics class 11 in english Medium CBSE Notes

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.  

Class 11, all subjects CBSE Notes in english medium, cbse class 11 Micro Economics notes, class 11 Micro Economics notes english medium, cbse 11 Micro Economics cbse notes, class 11 Micro Economics revision notes, cbse class 11 Micro Economics study material, ncert class 11 science notes pdf, class 11 science exam preparation, cbse class 11 physics chemistry biology notes