NCERT Class 11 Economics Chapter 9 Introduction Solutions to each chapter is provided in the list so that you can easily browse through different chapters NCERT Class 11 Economics Chapter 9 Introduction Question Answer and select need one. NCERT Class 11 Economics Chapter 9 Introduction Textual Solutions Download PDF. CBSE Class 11 Introductory Microeconomics Textbook Solutions.
NCERT Class 11 Economics Chapter 9 Introduction
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. NCERT Class 11 Economics Chapter 9 Introduction Solutions are part of All Subject Solutions. Here we have given NCERT Class 11 Economics Textual Question and Answer, CBSE Solutions For Class 11 Economics Solutions for All Chapters, You can practice these here.
Introduction
Chapter: 9
PART – (B) INTRODUCTORY MICROECONOMICS
TEXTUAL QUESTION ANSWERS
1. Discuss the central problems of an economy.
Ans: The central problems of an economy are:
(i) What to Produce: Deciding which goods and services to produce.
(ii) How to Produce: Choosing the most efficient methods and resources.
(iii) For Whom to Produce: Determining the distribution of goods and services.
These problems are also known as the “basic economic problems” or “fundamental economic problems”.
2. What do you mean by the production possibilities of an economy?
Ans: Production possibilities of an economy refers to the different combinations of goods and services which an economy can produce from its limited resources and available technology.
3. What is a production possibility frontier?
Ans: A Production Possibility Frontier/Production Possibility Curve depicts all possible combinations of two goods that an economy can produce with full and efficient utilisation of given resources.
4. Discuss the subject-matter of economics.
Ans: (i) Scarcity: Study of how individuals, businesses, and governments allocate limited resources.
(ii) Production: Analysis of how goods and services are produced.
(iii) Distribution: Examination of how income and wealth are distributed among individuals and groups.
(iv) Consumption: Study of how individuals and households make decisions about what goods and services to consume.
Economics can be divided into:
Microeconomics: Study of individual economic units (households, firms).
Macroeconomics: Study of the economy as a whole (inflation, unemployment, economic growth).
Overall, economics seeks to understand how societies allocate resources to meet their unlimited wants and needs.
5. Distinguish between a centrally planned economy and a market economy.
Ans:
| Basic | A Centrally Planned Economy | A Market Economy |
| Meaning | A centrally planned economy or a command economy is one where the price and allocation of resources, goods and services is determined by the government rather than autonomous agents as it is in a free market economy. | A market economy is an economic system in which the production of goods and services is determined by supply and demand. In a market economy, interactions between consumers and businesses determine what is available and at what price. |
| Objective | In contrast to market economics where producers and consumers affect the economy, centrally planned economies rely on a central authority, such as a government, to make the major economic decisions in regard to the production and distribution of goods and services. | A Market Economy as we have seen, a firm’s success in a market economy depends on satisfying customers by producing the products they want and selling those goods and services at prices that meet the competition they face from other businesses. |
6. What do you understand by positive economic analysis?
Ans: Positive economic analysis deals with the things ‘as they are’ such as India is overpopulated and prices have been rising in India.
7. What do you understand by normative economic analysis?
Ans: Normative economic analysis deals with the things as ‘they ought to be’ such as rich people should be taxed more and free education should be given to the poor.
8. Distinguish between microeconomics and macroeconomics.
Ans:
| Basic | Microeconomics | Macroeconomics |
| (a) Meaning | Microeconomics is the branch of economics that considers the behaviour of decision takers within the economy, such as individuals, households and firms. | Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocation of resources. |
| (b) Deals with | Microeconomics focuses on supply and demand, and other forces that determine price levels in the economy. | Macroeconomics focuses on the performance of economies-changes in economic output, inflation, interest and foreign exchange rates, and the balance of payments. |
| (c) Method | It uses a partial method of equilibrium, i.e., equilibrium in one marker. | It uses a general method of equilibrium, i.e., equilibrium in all markets of an economy as a whole. |
| (d) Central problem | It deals with the central problem of allocation of resources. | Its central problems are determination of level of income and employment. |
| (e) Instruments | Its main instruments are demand and supply. | Its main instruments are aggregate demand and aggregate supply. |
| (f) Example | Consumer’s equilibrium, producer’s equilibrium, etc. | National income or aggregate demand, etc. |
