Question
Why does an economic problem arise?###State any two causes of economic problem.###State two characteristics of the economic resources which give rise to economic problem.###hy does problem of choice arise?###Explain three factors that lead to an economic problem.

Answer

Economic problem arises because of scarcity of resources in relation to demand for them.
  1. Wants are unlimited:
  1. This is a basic fact of human life. Human wants are unlimited.
  2. They are not only unlimited but also grow and multiply very fast.
  1. Resources are limited:
  1. The resources to produce goods and services to satisfy human wants are available in limited quantities. Land, labour, capital and entrepreneurship are the basic scarce resources.
  2. These resources are available in limited quantities in every economy, big or small, developed or underdeveloped, rich or poor. Some economies may have more of one or two resources but not all the resources.
  3. For example, Indian economy has relatively more labour but less capital and land. The U.S. economy has relatively more land but less labour. No economy in the world is comfortable in all the resources.
  1. Resources have alternative uses:
  1. Generally a resource has many alternative uses.
  2. A worker can be employed in a factory, in a school, in a government office, self employed and so on.
  3. Like this, nearly all resources have alternative uses. But the problem is that which resource should be put to which use.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Similar questions

Given below is a cost and revenue schedule of a producer. At what level of output is the producer in equilibrium? Give reasons for your answer.

Output

(Units)

Price

(Rs.)

Total

(Rs.)

1 10 13
2 10 22
3 10 30
4 10 38
5 10 47
6 10 57
7 10 71
The quantity demanded of a commodity at a price of ₹ 8 per unit is 600 units. Its price falls by 25 percent and the quantity demanded rises by 120 units. Calculate the price elasticity of demand. Is its demand elastic? Give reason for your answer.
Describe any three major functions of money.
Define Average Revenue. Show that Average Revenue, and Price are same.
How does the budget line change if the consumer's income increases to Rs 40 but the prices remain unchanged?
Draw a demand curve in different market situation and also compare its elasticity of demand.
Which of the following is/ are included in the capital budget of the government? Give reasons for your answer.
  1. Borrowings from the public.
  2. Loans received from foreign government.
  3. Expenditure on acquisition of assets like roads, buildings, machinery etc.
  4. Loans and advances granted to the States Government.
From the following data, calculate National Income by
  1. Income method.
  2. Expenditure method.
S. No.
 
(₹in Lakhs)
(i)
Current transfers from rest of the world.
100
(ii)
Government final consumption expenditure.
1,000
(iii)
Wages and salaries.
3,800
(iv)
Dividend.
500
(v)
Rent.
 200
(vi)
Interest.
150
(vii)
Net domestic capital formation.
 500
(viii)
Profits.
 800
(ix)
Employers' contribution to social security schemes.
 200
(x)
Net exports.
(-)50
(xi)
Net factor income from abroad.
(-)30
(xii)
Consumption of fixed capital.
40
(xiii)
Private final consumption expenditure.
4,000
(xiv) Net indirect tax.  300
Define indifference curve. Explain the three properties of indifference curves.

OR

Explain the three properties of indifference curve.

OR

Explain the three properties of indifference curve.

OR

State and explain three properties of indifference curves.

From the following data, calculate 'gross value added at factor cost':
S. No.
 
(₹in lakhs)
(i)
Sales.
180
(ii)
Rent.
5
(iii)
Subsidy.
10
(iv)
Change in stock.
15
(v)
Purchase of raw materials.
100
(vi)
Profits.
25