SYLLABUS OF CLASS XI 80+20

• The entire syllabus of class XI we can divide into three sections

• The micro Economics - study of components on a micro scale
• The Study about the Indian economy
• The study of the statistics .

Two projects to be done .

 WHAT IS ECONOMICS ?
• Economics is a science that is concerned with economics questions .It
seeks to explain various questions , pertaining to economic behavious
of individuals , the society and the economy .
• In the present world Economics has gained significance because it
deals with the economics questions . It sheds light on various
economics issues to understand the various problems and the
consequences of the various policies pursued by the government .
• The goal is to evolve the policies that might prevent or solve various
problems like unemployment , underdevelopment , waster of
resources .
Evolution of Economics
Prehistoric man also faced economic issues .
Earlier Economics was called a political economics .
Aristotle a Greek Philosopher tried to define economics as he science of
management of family and state .
The mercantilists were the people who believed wealth was the
important component make a nation strong .
According to classical economists economics became the study of
wealth
FEATURES OF THE WEALTH
DEFINITION
• 1.Study of wealth : According to the definition , Economics enquires into the way
people earn wealth and spend it . Wealth has been the focus point of Economics
• 2. Causes of wealth : The definition examines the causes of wealth .He believed
that wages earned by human being is most important source of income of a
nation . Hence wealth can be increased by raising the level of production .
• 3. Economic man :The definition focuses on the economic man . The definition
states that Economics studies the behaviour of those human beings who have
only one aim of increasing their wealth at any cost and by any means .
• 4. The Wealth definition includes only material goods and does not include non
material goods such as services.
 CRITICISMS OF WEALTH DEFINITION
• TOO MUCH EMPHASIS ON MATERIALISM : The definition was often criticized a “
Bread and butter science “ or “ dismissal science” . The Too much emphasis given
on wealth . However his was unwarranted as Classical economists did not
preach worshipping of wealth , They emphasized on wealth as a basis of
existence to raise the standard of living .
• Narrow view of wealth :The major criticism was the narrow definition of wealth
in a narrow sense . Wealth consists of material or non – tangible goods . It does
not include the non material wealth .
• Secondary place to man : The major criticism is that secondary place ifs given to
man and his welfare. However Economics is more concerned with ways to
promote welfare and wealth is only a means to it .
• Ignores the problem of scarcity : The definition ignores the main cause of
economic activity namely the scarcity of resources.
 He is credited
for laying the
foundation for
the welfare
economics .
KEY ASPECTS OF THE DEFINITION

It deals with mankind.

It deals with human activities

related to material welfare of
mankind .

It postulates that the chief aim

of economics is the promotion
of material welfare of mankind.
 FEATURES OF THE DEFINITION
• 1. According to Marshal, Wealth is not the end itself , but is the means by which man acquires
material well being .
• 2. Study of material welfare :Marshal disagreed with the view of the classical economists who
regarded the decision of an economic man is to amass wealth . He shifted the focus of economics
from being a wealth – centred subject to being a discipline that highlights the objectives of social
betterment .
• 3. Study of ordinary business of life : :Marshall gave importance to mankind and regarded wealth
as secondary .He stressed on the role of human beings creation of wealth and income and how it
is used for their wellbeing.
• 4. He emphasised that man cannot be studied alone , rather he is studied as a part of the society.
• 5. Emphasis on requisites of wellbeing: Material needs are a basic need which must be fulfils
before one can think of other needs.
• 6. Exclusion of non – economics activities :Marshal limits the scope of economics to forces and
activities which can be measured in terms of money .Political , social , cultural and religious
activities are excluded .
 Other welfare definitions of economics
Keynes
• Pigou

Economics as a study of economic

welfare , which is that part of
economics welfare , which is that
part of social welfare that can be
bought and directly or directly into
relationship which Is meaning of
only
 CRITICISMS OF THE DEFINITION
• 1. Economics is regarded as Social Science only : The definition restricts the scope of Economics
to the study of persons living in organised communities However this is not correct as many
concepts of Economics is relevant to an individual irrespective of him or her lining in a
community .
• 2. Impractical classification of Activities : Marshal's classification of Economics is criticized as
every activity has an economic aspect out . Welfare is a composite concept and cannot be
differentiated from total welfare .
• 3. Materialistic aspect : Robbins criticised the narrow definition of welfare as it restricts welfare
only to material well being and ignores non material activities like services of doctors etc.
• 4. Restricted scope of Economics : Marshall could not establish a link between economic
activities and human welfare. There are many economic activities that are detrimental to
human welfare but are produced in economy like war equipment's , alcohol etc.
• 5. Vague concept of material welfare :The welfare definition is also criticised on the ground that
material welfare cannot be quantitatively measured . It differ according to time , place and
person .
Lionel Robbins definition of Economics
• “Economics is a science which studies human behaviour as a
relationship between ends and scarce means which have alternative
uses .”
Key aspects of definition

The means to satisfy the

Human wants are
wants are limited and
unlimited
have alternative uses
Features of the definition
1.Unlimited wants : The term Ends means the human wants which are
unlimited . Human wants keep multiplying and they differ in intensity.
Hence people have to make choices between the different wants .
2.Scarce means : The second fundamental fact is that the means to satisfy
the wants is limited . Means refer to the various productive resources such
as land ,labour ,etc. Although the resources have been increased over a
period of time, yet the demand for resources had been ahead of its
availability .
Since resources are limited only a limited amount of goods can be produced .
Hence the availability of goods is scarce in relation to demand .
3.Alternative uses of means : The economic problems arises because the
scarce resources have alternative uses . Hence the allocation of resources for
different commodities should be done in an efficient manner.
Eg: Land can be be put for growing wheat or corn or maize.
4.Choice :Since resources are scare and wants are unlimited ,people have to
make a choice in allocating the resources in producing the commodities . The
choice should be made in such a way to maximize the gains from the use of
these resources . The problem of choice is faced at individual, social , national
and international level.
 MERITS OF THE DEFINITION
• 1. Logical explanation of economic problem : Robbin’s definition brings out the
root cause of the economic problem which is the basic foundation of economics.
• 2. Universal in nature: The nature of the definition is universal . It is applicable in
any type of society – capitalistic , socialistic.
• 3. Human science :The problem of resource allocation and choice is faced by an
individual irrespective of whether he is a member of an organized society or not .
• 4. Wider View of economic activity :The wealth and the welfare definitions were
restricted to wealth and material welfare respectively .
• On the other hand the scarcity definition has wide scope as it involves all activities of
choice making in the society and outside.
• 5. Positive Science :The definition emphasises economics to provide a framework
within which one can analyse the economic problems faced by the society . It
enlightens the individuals and enables them to make rational decisions.
 CRITICISMS OF THE DEFINITION
• 1. Narrow view of Economics : The definition has been criticized for its
narrow scope as it makes the neutral ends and doesn’t classify between good
and bad .
• It tell about what choices to be made hence called a positive science , However the
subject should deal with what ought to be and is a normative science.
• 2. Restricted subject matter of Economics : A serious objection against
Economics is that the definition is restricted only to resource allocation and
ignores other important issues like literacy , unemployment , etc.
• 3.Static definition : According to critics , the definition does not take into the
possibility of increase in resources over time . Economics is not concerned
with the present but also the future problems. Hence it is considered static.
4. Economics is a science : Robbins has treated economics as a science that deals with the
formulation of laws only . However Economics is also an art as it is concerned with the solutions
to economic problems .
5. Economic Problem may not always arise from scarcity : According to Robbins Economic
problem arises due to scarcity . However economic problem can arise due to abundance as well.
Eg: The Great depression of the 1930s happened due toe abundance of goods.
6. Difference between means and ends not clear : It is not always easy to separate means from
ends . Eg: The student doing B. A course , the end will be to complete the B. A degree. But the
B.A degree is a means for that person to get a job .
Key features of Samuelson’s Growth
definition
• 1. Emphasis on economic problem : Like the scarcity definition , the growth definition
also emphasizes on the problem of choice .
• 2. Long term perspective : According to Samuelson , the problem of scarcity is not
merely confined to the present but also to the future. Along with the expansion of
wants , the resources can also be increased over time .Thus the definition has a long
term perspective .
• 3. Dynamic Approach :The definition has emphasized on the dynamic nature of study
of Economics that is taking economic growth as the main focus . This has widened
the scope of Economics .
• 4.Universal problem : The definition is universal in nature as it takes into
consideration both the barter economies and money using exchange economies .
• 5. Comprehensive :The definition is both growth and future oriented . It also takes
into consideration welfare aspect as well as scarcity and choice aspects as well.
• 6.Broader Perspective : The definition has broadened the subject matter of
economics as it includes consumption ,production, exchange , distribution and
economic growth .
CRITICISMS OF SAMUELSON’S
DEFINITION
• Samuelson has not given importance to the role of human welfare of
the society .
• He has neglected the role of service sector in the growth of the
nation.
CRITERIA MICRO ECONOMICS
1. UNIT OF STUDY Microeconomics studies economics
behavior of individual economic units
in making various decisions . The main
individual economic units are
households , firms , industries and
individual markets .
2. FOCUS OF STUDY Micro economics deals with
determination or prices and
quantities in individual markets . It
deals with the functioning of he
commodity and factor markets and
their interrelationship among these
markets.
MACRO ECONOMICS
Macroeconomics studies economics
behavior of the economy as a whole.
Macro economics deals not with
individual quantities but with
aggregate of these quantities not with
individual incomes but with national
income ; not with individual prices but
with the price levels ; not with
individual outputs but with national
output.

3. BASIS PARAMETER OF THE SUBJECT
MATTER
Price is the basis parameter of the
subject matter. The subject studies
how the individual units make
decisions on the basis pf price in
different markets.
National income is the basis
parameter of the subject matter . It
studies economics decisions relating to
aggregate consumption etc on the
basis on national income .
CRITERIA MICRO ECONOMICS MACRO ECONOMICS

4. DIFFERENT PERSPECTIVES MICRO ECONOMICS studies individual MACRO ECONOMICS studies the
problems and choices and hence its problems related to the economy and
importance is comparatively less. hence its importance is growing.

5. METHODS OF STUDY Micro economics uses technique of Macro Economics uses the technique of
partial equilibrium analysis in which thequasi general equilibrium analysis in
assumption of ceteris paribus is made which the study of the interdependence
(all other factors remaining same ) of macro variables like aggregate
demand , aggregate supply etc
6. NATURE OF ASSUMPTIONS In Microeconomics it is assumed that the In Macroeconomics ,it is assumed that
total output ,income and employment the allocation of resources , distribution
are given . The microeconomic study or output is given . The macroeconomics
deals with how the allocation of explains how the aggregate output
resources takes place. ,aggregate income etc are determined .