Sandeep Garg Macroeconomics Class 12: Chapter 1 Introduction

Sandeep Garg Class 12 Microeconomics Solutions Chapter 1 Introduction is explained by the expert Economic teachers from the latest edition of Sandeep Garg Microeconomics Class 12 textbook solutions. We at BYJU’S provide Sandeep Garg economics class 12 Solutions to give comprehensive insight about the subject to the students. These insights help as a priceless benefit to students while completing their homework or while studying for their exams. There are numerous concepts in economics, but here we provide you with the solution from Introduction, which will be useful for the students to score well in the board exams.

Sandeep Garg Solutions Class 12 – Chapter 1 – Part A – Microeconomics

Question 1

What is Economy?

Ans: Economy is a system which provides people with the means to work and earn a living.

Question 2

Define scarcity.

Ans: Scarcity refers to a situation in which resources are insufficient to meet all the human wants.

Question 3

What are the major central problems of the economy?

Answer: Major central problems are:

  • What to produce?
  • How to produce?
  • For whom to produce?

Question 4

What are the reasons for the Economic Problem?

Ans: The 3 main reasons for the existence of economic problems are:

  • Scarcity resources
  • Unlimited human wants
  • Alternate Uses

Question 5

What are the 2 branches of economics?

Ans: Economics is classified into 2 parts. Namely,

  • Microeconomics: It is that part of economic theory which studies the behaviour of individual units of an economy.
  • Macroeconomics: It is that part of economic theory which studies the behaviour of aggregates of the economy as a whole.

Students can also refer to – Introduction To Microeconomics

Question 6

Expand PPF.

Ans: Production Possibility Frontier

Are the following statements True or False?

Question 7

The problem of ‘how to produce’ involves a choice between consumer goods and capital goods.

Ans: False

Question 8

The economy always operates on production possibility frontier.

Ans: False

Question 9

Growth of resources shifts the production possibility frontier towards the right.

Ans: True

Question 10

The opportunity cost of a machine which can produce only one product is high.

Ans: False

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