Introduction — Part 1: Scarcity, Choice and Economic Activity: visual lesson, CBSE Class 11 Economics

Lesson

Introduction: Why Economics Needs Numbers

Part 1: wants and scarcity, choice, the economic activities and the economic agents.

In this lesson you will

Explain why scarcity of resources against unlimited wants forces choices
Describe consumption, production and distribution with examples
Identify consumers, producers, service holders and the government in a situation
Explain why economics needs numerical facts

The economic problem in four steps

Concept

Unlimited wants, limited resources

Human wants are unlimited: when one want is met, another appears. The resources that can satisfy them are scarce (limited) and can be put to alternative uses.

In each case a want is postponed, which is the cost of choosing.
Imagined case	Wants	Limited resource	Choice made
A family in Rangpur	Food, school fees, a phone, a holiday	₹10,000 a month	Food and fees first; the holiday waits
Farida's bakery in Pipalnagar	Cakes and bread in the morning shift	One oven	Bread now, cakes in the afternoon
A village panchayat	A road, a school room, a well	One year's funds	The well first

Concept

Scarcity makes choice unavoidable

Because resources are scarce and have alternative uses, every person and every society must choose.

Using a resource for one purpose means giving up another.
Economics is the study of how individuals and society choose to use scarce resources to satisfy their wants.
Rich or poor, every economy faces this problem.

Cookies