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Introduction — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsIntroduction3 Marks
Question
Why do we need to study Economics?
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Answer

Economics is required in all spheres of life.
  1. As a Consumer: All of us have a limited income and we wish to satisfy our unlimited wants from it. Economics helps us to take optimum decisions regarding consumption and allocation of income to different goods and services.
  2. As a Producer: A producer wants to produce his goods and services in such a way that his cost is least and profits are most. Economics gives such principles which help him to attain such a combination.
  3. As an Investor: As an investor, we need to invest our funds in such a venture which give us maximum returns with minimum risk. Once again Economics gives such principles which help him to attain such a combination.
  4. As a Citizen: As a citizen, Economics helps us to understand the impact of Government policies on our society and economy. Accordingly, we can say if government is working efficiently or not.
  5. As a human being: When we apply the principle of scarcity on our life, we realize that time is our scarce most resource and is non renewable. We can't increase our life by one second by spending our entire wealth. Therefore, we must make best possible use of our e time. It teaches us efficiency, optimum utilization, no wastage, rationality and decision making by cost-benefit analysis. What are vital economic activities?

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