Telangana Open School (TOSS) Class 12 Economics — Flashcards

A: The central problem of economics is scarcity — unlimited human wants versus limited resources. Because resources are scarce and have alternative uses, individuals and societies must make choices about

A: Adam Smith defined economics as 'a science which inquires into the nature and causes of the wealth of nations.' He focused on the production and growth of wealth, emphasizing how nations use natural r

A: The main features are: (1) It focuses only on material goods; (2) It emphasizes the creation and growth of wealth; (3) It treats economics as a study of wealth, placing humans in a secondary role. Thi

A: Economic growth refers to a sustained increase in the production of goods and services in a country over time. It is measured by the rise in real national income or real GDP. For example, if India’s G

A: Economic development is a broader concept that includes not only economic growth but also improvements in the quality of life, such as education, health, equality, and infrastructure. For example, imp

A: Economic growth is a narrow, quantitative concept focusing only on the increase in output (like GDP), while economic development is broader and includes qualitative improvements like education, health

A: Utility refers to the want-satisfying power of a commodity. It is the satisfaction or benefit a consumer gets from consuming a good or service. Utility is subjective and varies from person to person.

A: Cardinal Utility is the approach where utility can be measured in numerical units like 1, 2, 3, etc. It assumes that satisfaction from consuming a good can be expressed quantitatively. For example, an

A: Ordinal Utility is the approach where utility cannot be measured in numbers but can be ranked in order of preference. Consumers compare goods qualitatively, such as preferring coffee over tea. This me