Basic concepts of economics from "summary" of Oswaal NCERT One For All for UPSC & State PSC's Indian Economy Classes-9 to 12 (Old & New NCERT Edition) (For 2023 Exam) by Oswaal Editorial Board
Economics is the study of how societies use scarce resources to produce valuable goods and services and distribute them among different people. It is a social science that deals with the production, consumption, and distribution of goods and services. One of the basic concepts of economics is scarcity. Scarcity refers to the limited availability of resources compared to society's unlimited wants. This fundamental concept drives economic decision-making as individuals, businesses, and governments must make choices about how to allocate scarce resources efficiently. Another key concept in economics is opportunity cost. Opportunity cost is the value of the next best alternative that is foregone when a decision is made. It is essential to consider opportunity cost when making economic decisions to ensure that resources are used efficiently. Supply and demand are crucial concepts in economics. Supply refers to the quantity of a good or service that producers are willing and able to offer for sale at different prices. Demand, on the other hand, represents the quantity of a good or service that consumers ...
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