Gujarat Board Class 11 Economics — Flashcards for Quick Revision

A: In Sanskrit, economics is called 'arthshashtra' which is derived from 'arth' meaning 'purpose' or 'goal'. Arthshashtra means 'the science of benefits or purpose in practical life', describing that the

A: The English word economics comes from the Greek word 'Oikonomos', where 'Oikos' means households and 'nomos' means management. Hence, economics originally meant 'management of households'.

A: According to Kautilya, the intention of human beings is 'arth' (wealth). He defines that the piece of land with human settlement is 'arth' (wealth), and the science explaining the purpose and utility

A: Use-value is determined by the usefulness of a commodity to a consumer for their various needs (e.g., food, water have high use-value). Exchange-value is the worth of one unit of a commodity measured

A: Price is the exchange value (worth) of a commodity measured in terms of units of currency. If a commodity is exchanged for money, then such monetary exchange value is termed as 'price'. It represents

A: Goods are commodities which have physical existence and are meant to satisfy consumption needs (e.g., food, mobile phone, television). Services are commodities which are intangible or do not have phys

A: Demand is the quantity of a commodity which a buyer desires, is able and willing to buy at a given price at a given point of time. It requires five essential factors: desire, willingness to buy, abili

A: The demand function specifies a mathematical relationship between demand for a good and its determinants. Where: Dx = Demand for commodity X, Px = Price of commodity X, Py = Price of related commodity

A: The Law of Demand states: 'When other factors influencing demand remain unchanged, if price of a good falls, its demand expands and if price of a good rises, its demand contracts.' This shows an inver