NIOS Class 12 Economics Chapter 13 Central Problems of an Economy

NIOS Class 12 Economics Chapter 13 Central Problems of an Economy, Solutions to each chapter is provided in the list so that you can easily browse through different chapters NIOS Class 12 Economics Chapter 13 Central Problems of an Economy and select need one. NIOS Class 12 Economics Chapter 13 Central Problems of an Economy Question Answers Download PDF. NIOS Study Material of Class 12 Economics Notes Paper 318.

NIOS Class 12 Economics Chapter 13 Central Problems of an Economy

Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 12 Economics Chapter 13 Central Problems of an Economy, NIOS Senior Secondary Course Economics Solutions for All Chapters, You can practice these here.

Central Problems of an Economy

Chapter: 13

Module – V: Introduction To Economics

TEXT BOOK QUESTIONS WITH ANSWERS

INTEXT QUESTIONS 13.1.

Q.1. State whether the following statements are true or false:

(i) Resources are scarce.

Ans. True.

(ii) Wants are limited.

Ans. False.

(iii) Scarcity does not lead to choice.

Ans. False.

(iv) Resources have alternative uses.

Ans. True.

(v) Every country does not face the basic economic problem.

Ans. False.

(vi) Economizing of resources means being miserly about using resources.

Ans. False.

(vii) Land is a factor of production.

Ans. True.

(viii) Human wants are unlimited.

Ans. True.

(ix) Resources are scarce if demand is less than its availability.

Ans. False.

(x) Only producers face economic problems.

Ans. False.

INTEXT QUESTIONS 13.2.

Q.1. Choose the correct answer:

1. The problem of how to produce relates to:

(a) Distribution of income.

(b) Technique of production.

(c) Choosing the goods to produce.

(d) Choosing the quantities to produce.

Ans. (b) Technique of production.

2. The problem of what to produce is solved by:

(a) Preferences of people.

(b) Market prices.

(c) Government allocation of resources.

(d) All of the above.

Ans. (d) All of the above.

3. The income earned by labour in the production process will be part of the problem of:

(a) What to produce and what quantities.

(b) How to produce.

(c) For whom to produce.

(d) None of the above.

Ans. (c) for whom to produce.

4. Labour intensive technique of production means:

(a) The use of only labour in production.

(b) Production unit is owned by labour.

(c) The technique used for producing necessities.

(d) The use of more labour than capital in producing goods.

Ans. (d) The use of more labour than capital in producing goods.

5. The central problems facing an economy relate to:

(a) The allocation of resources.

(b) What to produce.

(c) How to produce.

(f) For whom to produce osi.

Ans. (a) The allocation of resources.

INTEXT QUESTIONS 13.3.

Q.1. Choose the correct answer:

1. Under utilization of resources means that resources are being used _________ (efficiently/ inefficiently).

Ans. Inefficiently.

2. Technological ________ (backwardness/ improvements) lead to growth of resources.

Ans. Improvements.

3. Resources should remain _________ (idle/ fully utilised).

Ans. Fully utilised.

4. Ifa person is _________ (employed/ unemployed), it means that the resource is being wasted.

Ans. Unemployed.

5. Quantitative change in resources means that ________ (there is more labour available/ labour gets more skill and training).

Ans. There is more labour available.

INTEXT QUESTIONS 13.4.

Q.1 State whether the following statements are true or false:

1. A point on the PPC implies that resources are fully utilised.

Ans. True.

2. A point inside the PPC implies existence of under employment.

Ans. True.

3. A PPC is drawn on the assumption that resources of the economy are increasing.

Ans. False.

INTEXT QUESTIONS 13.5.

Q. Choose the correct answer:

1. (a) A point on the production possibility curve shows-

(i) Growth of resources.

(ii) Inefficient utilization of resources

(iii) Unemployment of resources.

(iv) Full and efficient utilization of resources.

Ans. (iv) Full and efficient utilization of resources.

(b) An outward shift of the production possibility curve shows:

(i) Growth of resources.

(ii) Inefficient utilization of resources.

(iii) Unemployment of resources.

(iv) Full and efficient utilization of resources.

Ans. (i) Growth of resources.

2. State whether true or false:

(a) A point inside the production possibility curve shows underutilization of resources.

Ans. True. 

(b) Unemployment of labour means that resources are not being fully employed.

Ans. True.

(c) Better technology will lead to an inward shift of the production possibility curve.

Ans. False.

(d) A production possibility curve can depict more than two goods in an economy.

Ans. False.

(e) An economy needs to choose the point at which it wishes to operate on the production possibility curve, as all points are equally efficient.

Ans. True.

TERMINAL EXERCISE

Q.1. How do economic problems arise? Would there be any economic problem if resources were unlimited?

Ahs. Every economy has limited quantity of resources. With this limited quantity of resources an economy can neither produce all what it wants nor can it produce whatever it wants in abundance. To produce a particular goods and service it has to forego all other options of the good and services that it can produce. This, however, leads to a prɔblem in the use of resources. Now making such a choice is the economic problem. The problem of choice is laced both by consumers as well as producers. Consumer faces the problem in a way that with limited income which goods or services should he buy and which he shouldn’t. On the other hand, the producer has to face the problem of where to allocate the limited resources for the production of goods and services, for example, if on a farm both wheat and sugarcane or both and in what proportion should he cultivate them both. However, the problem of choice also arises in case of technique of production. This is due to the selection of technique of production. When one should opt for labour-intensive technique for the production of a particular good and services and in what proportion should labour and capital be used. Had there been unlimited resources there would have no economic problem in any economy.

Q.2. Explain how scarcity leads to choice.

Ans. Scarcity of resources also leads to choice. For example, Neha has only Rs. 20 to spend but she wants to buy many things with it,.so she must choose which things she should buy in order to satisfy her wants. In this way a consumer faces the economic problem of unlimited wants and limited resources. Similarly producers also face the economic problem.as they need to decide to which alternative use they should put their scarce resources. This shows that the basic economic problem is also faced by both consumers and producers.

Suppose resources were not limited. Would it still lead to the economic problem? The answer to this question is that if resources were not scarce they could be used to satisfy all wants Hence, the basic problem of scarcity and choice would not arise. Scarcity of resources results in people making decisions about how best they would like to use these limited resources. Making the best use of resources is termed as economizing of resources. Economizing of resources does not mean being miserly about using resources, but using resources judiciously so that maximum benefit can be obtained from the scarce resources.

Q.3. Using examples explain the problem of what to produce and in what quantity.