Q1: What is Economics?
A1: Economics is about making choices in the presence of scarcity.
Q2: What is scarcity?
A2: scarcity can be defined as a situation when demand for something exceeds its supply.
Reasons for Choices or Occurrence of Scarcity-
- Human wants are unlimited.
- But the resources that can satisfy human wants are limited.
- And these resources can be put to alternative uses.
Economics can be divided into three activities- Production, Distribution and Consumption.
The CENTRAL PROBLEM of the economy is related to the above mentioned three activities.
Central Problems of an Economy-
1. Allocation of resources
-What to produce
-How to produce
-For whom to produce
2. Efficient utilisation of resources
3. Growth of resources
ECONOMY is a boundary in which production, consumption and distribution take place.
These are some starting notes on class 12th economics. More in my class will make you get top scores in the subject with a personal guarantee. The students will love the notes' explanation, and one will build a self-interest in the subject by my lectures.
Thank you! 😊