ICSE Class 11 Economics — Flashcards for Quick Revision

A: The term Economics is derived from the Greek words Oiks, meaning household, and Nemein, meaning management. So, Economics originally meant the management of a household with limited resources.

A: Aristotle is regarded by some writers as the first economist. He used the term in the sense of managing the household and the state, which gives an early idea of economic thought.

A: Kautilya used the term Economics for both economic and political activities. This shows that economic ideas were linked with statecraft and administration in early Indian thought.

A: Microeconomics studies the economic behaviour of the individual unit, such as a person, a household, or a firm. It focuses on individual prices, individual demand, and individual output. It is also ca

A: Macroeconomics deals with aggregates rather than individual quantities. It studies national income, total employment, aggregate demand, aggregate supply, and the general price level. It is also called

A: Microeconomics studies individual units like a firm, household, or commodity market, while macroeconomics studies the economy as a whole. Microeconomics focuses on price determination of individual go

A: An economic problem generally means the problem of making choices that occurs because of the scarcity of resources. It arises because human wants are unlimited, while resources are limited.

A: Economic problem is concerned with the uses of scarce resources among alternative human wants and in using these resources towards the end of satisfying wants as fully as possible.

A: Scarcity means only a limited amount of resources exists, so only a limited amount of goods can be produced. Because wants are unlimited, not all wants can be satisfied at the same time, so choices ha