Basic concepts of economics | commerce | economics | Class -11th,12th | 2024-25

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Basic concepts of economics | Class -11th & 12th | commerce|

Microeconomics:

1. *Opportunity Cost*: The value of the next best alternative given up when making a choice.
2. *Supply and Demand*: The relationship between the quantity of a good or service producers are willing to sell and the quantity consumers are willing to buy.
3. *Scarcity*: The fundamental problem of economics, where needs and wants are unlimited, but resources are limited.
4. *Market Equilibrium*: The point at which the supply and demand curves intersect, resulting in no excess supply or demand.

Macroeconomics:

1. *Gross Domestic Product (GDP)*: The total value of all final goods and services produced within a country's borders.
2. *Inflation*: A sustained increase in the general price level of goods and services.
3. *Unemployment*: The number of people able and willing to work, but unable to find employment.
4. *Economic Growth*: An increase in the production of goods and services over time.

Economic Principles:*

1. *Division of Labor*: Specialization in production to increase efficiency.
2. *Comparative Advantage*: The idea that countries should specialize in producing goods for which they have a lower opportunity cost.
3. *Absolute Advantage*: The ability of an individual or country to produce more of a good or service with the same amount of resources.
4. *Diminishing Marginal Utility*: The decrease in satisfaction or benefit from consuming additional units of a good or service.

These concepts form the foundation of economic analysis and are essential for understanding how individuals, businesses, and societies make decisions about how to allocate resources.

CLASS -11th &12th | Economics notes
Economics basic knowledge
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