We have provided the Economy class 11 concepts
The economy is a Greek word that means the management of the household. The meaning of the term economy has evolved a lot over time. An Economy is a system that provides people with the means to work and earn a living. It is a system that provides means of living to the people in this task, it makes use of the available resources to produce goods and services that want the people. At the same time, it gives people an opportunity to make money to buy goods and services that are being produced. For Example, The Indian Economy consists of all sources of production in agriculture, Industry, Transport, Communication, Banking, Etc.
Today the term refers to the system of activities that are related to production and consumption which are carried on in daily Life. For instance, we have seen mines, factories, shops offices flyovers, etc. All of their institutions and organizations may be collectively called an economy. Such units allow people to earn an income and the same time, contribute to the production of goods and services which people require for use.
Vital Processes of an Economy:
In the basics of Economy class 11th, which provides for the living of people. There are three (3) necessary steps, that should be undertaken to fulfill this aim. The following activities are as follows:
- Production
It is the process under which economic resources and inputs are combined (like Land, Labour, and Capital equipment) to provide goods and services to the economy.
- Consumption
In the second vital process of an economy, the meaning of consumption is the use of economic goods and services produced in an economy for the satisfaction of human wants
- Investment or capital Formation
It is the process under which capital is employed to make wealth for the future.
In simple words, investment means asset as to create an asset, there is an employment of capital, time, effort, and money. Investment plays a crucial role in the determination of an economy.
Economic System
Class 11 Economy Provides a Range of Concepts of Economic System
An Economy system is a large interrelated system of production and consumption activities that help in determining the allocation of scarce resources in the called economy system.
- Factors Affecting Economic Systems:
In the Concept of class 11 economy, the factors affecting Economic Systems are:
In the Economic Development country, the role of economic factors is decisive the stock of capital and the rate of capital accumulation in most cases settle the question whenever at a juwen point of time a country will grow or not and the other economic factors which have also some bearing on the development but their importance is hardly comparable to that of capital formation. For Example, the surplus of food grain output available to support the urban population, foreign trade conditions, and the nature of the economic system are some such factors the role of economic development as follows:
- Capital Formation
The Role of strategic capital Formation in raising the level of production has traditionally been acknowledged in economics. Now it is universally admitted to the pace of growth and to save a high ratio of its income, with its objectives of raising the level of investment. The example of capital formation in Great Reliance on Foreign aid is highly risky and thus has to be avoided.
The Economic Systems, a country cannot hope to achieve economic progress unless a certain minimum rate of capital accumulation is realized. However, if some country wishes to make spectacular strides it will possible to raise their rates of capital formation still higher.
- Natural Resources
The Important Principle Factor affecting natural resources development of an economy is the natural resources. Among the natural resources like the land area and the quantity of the soil, Forest wealth and good river system minerals and oil resources, good and bracing, etc., Are included for economic growth.
The existence of natural resources in abundance is essential. A country that is deficient in natural resources may not be in a position to develop rapidly.
The natural resource is a necessary condition for economic growth. It is not a sufficient one. India and Japan are the two contradictory Examples.
According to Lewis”
Another thing is being equal makes can better use of rich resources than they can of poor in less developed countries, natural resources are unutilized, underutilized, or miss – utilized this is the reasons for their backwardness this is due to economic backwardness and lack of technological factors.
According to Professor Lewis’
A country that is considered poor in resources may be very rich in resources at some later time not merely if unknown resources are discovered but equally in new methods are discovered known as resources Japan is such a country that is deficient in natural resources. But it is one of the most advanced countries in the world because it has been able to discover a new use for limited resources.
What is Marketable Surplus?
The marketable surplus refers to the difference between the total output produced by a farmer and his self-consumption from that output. In other words, is that portion of the total produce that the farmer such in the market
The Formula of Market Surplus is
Market Surplus = Total Form output produced by the farmer – own consumption of farm output.
Conditions Favourable For Trade
At the present juncture of the 21st century use can identify the following condition as favorable for developing countries in employing for using the train as an instrument promoting their economic growth
- Continuing relocation for manufacturing activities for industrial economics to developing Economics of the firm some opportunity to expand trade only in good but also in services which is increasingly Trade
- the intervention of trade with another element of globalization is the spread of the international production networks
- The increasing spread of globalization translation into a large movement of goods and services across the nation.
What is Positive Economic Class 11th
Positive Economics is used for analysis in the study of Economics most economists look at what has happened and what is currently happening in a given economy to form their bases of prediction for the future time positive Economy is based on facts and data and it is used by economics to predict future based on current or previous data
- Statement of positive economics income inequality exists in all over the country raising the form price in the developing country will improve ruler income in those countries
- The reduction in income tax will improve the center of the unemployed finding work the statement on the positive number should not be taken as a tooth the positive statement should be verified as true or false by comparing them with actual data
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