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Basic Concepts of Economics — Revision Notes

ICSE · Class 11 · Economics

Basic Concepts of Economics revision notes for ICSE Class 11 Economics: 4 topics in quick points. Part of the ICSE Class 11 Economics syllabus.

43 questions52 flashcards4 formulas & key relations5 concepts

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An infographic illustrating the distinction between microeconomics (study of individual agents and markets) and macroeconomics (study of the economy as a whole), with examples of topics for each.
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Key Topics to Revise

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1. Microeconomics and Macroeconomics

  • The terms microeconomics and macroeconomics were first coined by Ragnar Frisch of Oslo University in 1933.
  • 'Micro' comes from the Greek word 'mikros', meaning small.
  • 'Macro' comes from the Greek word 'makros', meaning large.
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2. Utility and Marginal Utility

  • Utility means the psychological satisfaction obtained from the consumption of a commodity.
  • Utility is measured in psychological units called utils.
  • Utility is subjective, relative, abstract, differs from usefulness, differs from pleasure, has no ethical or moral significance, and depends on the intensity of want.
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3. Value and Price

  • Value is used in two senses: value-in-use and value-in-exchange.
  • Value-in-use is the satisfaction obtained from consumption.
  • Value-in-exchange is the quantity of another commodity that can be exchanged for it.
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4. Wealth and Welfare

  • Wealth means all things that have value and satisfy the four characteristics: utility, scarcity, transferability, and externality.
  • A thing must possess all four characteristics to be called wealth.
  • Wealth may be individual, social, national, or international.

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Full Notes

Key Concepts

Microeconomics studies the economic behaviourMacroeconomics studies aggregates of the wholeUtility is the psychological satisfactionMarginal utility is the addition madeThe law states that after consuming

Frequently Asked Questions

What are the important topics in Basic Concepts of Economics for ICSE Class 11 Economics?
Key topics in Basic Concepts of Economics include Microeconomics and Macroeconomics, Utility and Marginal Utility, Value and Price, Wealth and Welfare. Study these first, then practise questions on each for Class 11 exams.
How should I revise Basic Concepts of Economics for Class 11 exams?
Learn the core ideas first, then work through the 43 practice questions on Basic Concepts of Economics. Revise definitions regularly and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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All ICSE Class 11 Economics Revision Notes

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