Basic Problems of an Economy ISC Class 11 | PPC | Sir Tarun Rupani Commerce 

HERE IS NOTES------------ Economic problem :- It is the problem regarding allocation of limited resources for the production of alternative goods and services. It is the problem of choice. All economic problems are due to scarcity. The law of scarcity states that goods are scarce because they are not enough resources to produce all goods people want. Why does Economic problem Arises? 1.Unlimited wants:- Human wants are never ending and multiplie. 2.Limited Resources:- factors of production (resources) are limited. 3.Resources have alternative uses:- it means resources can be put to many uses. So there is need of "Economising of Resources" which means that available resources should be allocated among different uses in such a way that they are put to their best possible use. Basic/Central Problem of an Economy 1. What to Produce:- what commodity and what quality to be produced. Commodities:- Consumes goods are Producer goods. Civil goods or War goods. It is the problem of allocation of resources. It depends upon pattern of demand (Type) and availability of resources. 2. How to Produce:- What technique of production should be used. Labour intensive technique or Capital intensive technique. For example, Cotton clothes can be produced by hand-looms as well as power-looms. It depends on what is level of technical knowledge and nature of economy. A Labour Surplus /Under-developed economy should prefer Labour intensive technique. 3. For whom to Produce:- It is the problem of distributing totoal output of goods and services among the members of economy. It should be distributed on the basis of contributes made by the factors of production. For Land--Rent, Labour--Wages, Capital--Investment, and Enterprise--Profit. "What, How, and for whom to Produce" are fundamental problem of all economics 4. Problem of Fuller utilitation of Resources- Having idel or unemployment of Resources should be checked to make best/optimum use of resources. 5. Problem of Efficient Use of Resources- Avoiding wastage of Resources are used to the their but possible use. It means maximum output from minimum resources. 6. Problem of Economic Growth- Problem of increasing the capacity to produce more goods and services. Increasing per Capita Income or National Income. Production possibility Curve and Cental problems Production possibility Curve:- It is the curve which shows various combinations of two goods that can be produced with available technique and given amount of resources. It is also called Transformation curve or Production possibility Frontier. Assumtion of PPC 1. The amount of prouctive resources are fixed. 2. There is no in technology. 3. All resources are fully utilised. 4. Resources are not equally efficient in Production of all goods. Characteristics of PPC:---------- 1. It slopes downward to Right:- to produce one goods the economy has to sacrifice other because resources are fixed and fully utilised. 2. It is concave from origin - due to increasing MOC because resources are not equally efficient in Production of all goods. Basic Problem of a PPC curve:--- 1. The problem of Scarcity- Any point on or inside PPC is attainable but any point outside PPC is unattainable as resources are limited. 2. The problem of choice- Various combinations of 2good can be produced. 3. The problem of what to produce- it depends on taste and preferences. 4. Problem of full and Efficient utilisation of Resources- any point on PPC shows efficient utilisation of resources but any point inside PPC shows inefficient use . 3. Problem of Economic Growth- If there is increase in resources and improvement in technological development the PPC will shift outward Abb sabka problem thik ho gaya 🥺 कोई भी लक्ष्य तेरे साहस से बढ़ा नहीं हारा वही जो लड़ा नहीं...🗿🫂 All the best 👍♥️

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So please explain micro and macro economics, concepts. Please sir

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Is this explanation valid for 9th grade ICSE as well ? We've got the same concepts. So could we utilize some points from this concept for the justification of specific answers ?

Sir kya ap according to reduced syllabus se padha rhe hai kya

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Sir notes ka pdf available hai kya??

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Thank You Sir