If you are serching for Economics notes for 12th class CBSE, then it is the best place where you can get your stuff! Notes are very helpful for our studies specially for the subjects like economics. If you maintain proper notes for any subject and use them effectively then nothing can stop you from scoring high marks in exams.
So lets begin with introductory micro-economics...
So lets begin with introductory micro-economics...
KEY CONCEPTS
-MICRO ECONOMICS
-ECONOMY
-TYPES OF ECONOMY
-PLANNED ECONOMY
-MARKET ECONOMY
-CENTRAL PROBLEMS OF AN ECONOMY | BASIC ECONOMIC PROBLEMS
-WHAT TO PRODUCE?
-HOW TO PRODUCE?
-FOR WHOM TO PRODUCE?
-CAUSES OF AN ECONOMIC PROBLEM
-PRODUCTION POSSIBILITY CURVE
-MARGINAL OPPORTUNITY COST –MOC
-MARGINAL RATE OF TRANSFORMATION
-SCARCITY OF RESOURCES
-OPPORTUNITY COST
1.MICRO ECONOMICS:
It is a study of behaviour of individual units of a
n economy
such as individual consumer, producer etc.
2.ECONOMY:
An economy is a system by which people get their l
iving.
3.TYPES OF ECONOMY:
(i)Capitalist economy / Market economy
(ii)Socialist economy / Planned economy
(iii)Mixed economy
4.MARKET ECONOMY:
It is an economic system, in which all material means of production are owned and operated by the private with profit motive.
5.PLANNED ECONOMY:
In this economy all material means of production are owned by the government or by a centrally planned authority. All important decisions regarding production, exchange and distributions, consumptions of goods and services are made by the government or by a centrally planned authority
6.ECONOMIC PROBLEM:
“An economic problem is basically the problem of choice” which arises due to scarcity of resources having al
ternative uses”.
7.CAUSES OF ECONOMIC PROBLEM :
i)Scarcity of resources
ii)Unlimited wants
iii)Limited resources having alternative uses
8.BASIC (CENTRAL) ECONOMIC PROBLEMS
i)Allocation of resources
a.What to produce?
b.How to produce?
c.For whom to produce
ii). Efficient Utilization of resources
iii.)Growth of resources
9.PRODUCTION POSSIBILITY CURVE (PPC):
PP curve shows all the possible combination of two goods that can be produced with
the help of available resources and technology.
10.MARGINAL OPPORTUNITY COST:
MOC of a particular good along PPC is the amount of other good which is sacrificed for produc
tion of additional unit of another good.
11.MARGINAL RATE OF TRANSFORMATION:
MRT is the ratio of units of one good sacrificed to produce one more unit of other good.
Unit of one good sacrificed
MRT = Unit of one good sacrificed / More unit of other good produced
= ∆y / ∆x
12.SCARCITY OF RESOURCES:
Scarcity of resources means shortage of resources in relation to their demand.
13. OPPORTUNITY COST:
It is the cost of next best alternative foregone.
14.POSITIVE ECONOMICS:
Positive economics deals with what is, what was (or) how an economic problem facing the society is actually
solved.
15. NORMATIVE ECONOMICS:
It deals with what ought to be (or) how an economic problem should be solved.
