Maharashtra Board Class 11 Economics Chapter 1 Basic Concept in Solutions

Choose the Correct Option

 

Question 1. Statements related to Economics:
(a) Economics is a social science.

Question 1. Choose the correct statements from the following:
(b) Concept of economics is derived from the Greek word ‘Oikonomia’.
(c) Economics is related to the study of human economic behaviour.
(d) Economics is related to the management of the household.
Options:
(a) a, b and c
(b) a and b
(c) b and c
(d) a, b, c, and d
Answer: (a) a, b and c
In simple words: Economics is about how people behave with money and resources, and its name comes from an ancient Greek word for managing a household.

🎯 Exam Tip: Remember that 'Oikonomia' means household management, which is the root origin of the word economics.

 

Question 2. Statements incorrect with reference to Adam Smith’s definition:
(a) Adam Smith is a classical economist.
(b) Wealth of Nations is authored by Adam Smith.
(c) Economics is the science of wealth.
(d) Economics studies common man.
Options:
(a) d
(b) a, b and c
(c) a and d
(d) c and d
Answer: (a) d
In simple words: Adam Smith defined economics as the study of wealth, not the study of the common man, which was introduced later by other economists.

🎯 Exam Tip: Adam Smith is known as the 'Father of Economics' and focused purely on wealth creation, while Alfred Marshall later shifted the focus to the common man's welfare.

 

Question 3. Key points in Lionel Robbins’ definition:
(a) Wants are unlimited
(b) Means are limited
(c) Wants are not gradable
(d) Means have alternative uses.
Options:
(a) a and b
(b) b and c
(c) a, b and d
(d) a, b, c, and d
Answer: (c) a, b and d
In simple words: Lionel Robbins explained that we have endless wants but limited resources, which have different uses, meaning we must make choices.

🎯 Exam Tip: Robbins' definition is based on scarcity. Remember that wants are gradable because we can prioritize them based on urgency.

 

Question 4. Statements related to wealth:
(a) Wealth means anything which has market value and can be exchanged for money.
(b) It is external to a human beings.
(c) Wealth has no utility.
(d) Wealth is scarce and exchangeable.
Options:
(a) a, b and d
(b) a, c and d
(c) b, c, and d
(d) None of the options
Answer: (a) a, b and d
In simple words: Wealth must have utility, scarcity, transferability, and externality to human beings. Since statement (c) says wealth has no utility, it is incorrect.

🎯 Exam Tip: Remember the four essential characteristics of wealth: utility, scarcity, transferability, and externality. Any statement contradicting these is incorrect.

 

Question 5. Aspects considered in National Income:
(a) Final goods and services are included in national income.
(b) Produced goods in a financial year are included in national income.
(c) Double counting is avoided.
(d) Value is considered as per market price.
Options:
(a) a and c
(b) b and c
(c) a, c and d
(d) a, b, c, and d
Answer: (c) a, c and d
In simple words: National income includes the market value of final goods and services produced in a year while carefully avoiding counting the same item twice.

🎯 Exam Tip: Be clear that only final goods (not intermediate ones) are counted in national income to prevent the error of double counting.

 

2. Complete the Correlation:

 

Question 1. Natural sciences : Exact sciences : : Social sciences : ___________
Answer: Abstract sciences / Inexact sciences
In simple words: Natural sciences have precise and universally testable laws, whereas social sciences study human behavior and are therefore called abstract or inexact.

🎯 Exam Tip: Use the term 'Abstract sciences' or 'Inexact sciences' to complete this correlation, as social science laws are empirical relations rather than exact physical laws.

 

Question 1. Natural science : Exact science : : Social science : ___________
Answer: Abstract/Inexact Sciences
In simple words: Social sciences study human behavior, which cannot be measured exactly in a laboratory like physical sciences.

🎯 Exam Tip: Remember that social sciences are called abstract because human behavior is highly unpredictable and cannot be tested under controlled conditions.

 

Question 2. Physics : ___________ : : Psychology : Social Science
Answer: Natural Science
In simple words: Physics is a natural science because it deals with empirical facts and universal laws of nature.

🎯 Exam Tip: Always pair natural sciences with exact laws and social sciences with human behavior to get these correlation questions right.

 

Question 3. Arthashastra : Kautilya : : Wealth of Nations : ___________
Answer: Adam Smith
In simple words: Kautilya wrote the ancient Indian treatise 'Arthashastra', while Adam Smith wrote the famous book 'Wealth of Nations' in 1776.

🎯 Exam Tip: Memorize key economic books and their authors as they are frequently asked in objective questions.

 

Question 4. Necessity : ___________ : : Comforts : Washing machine
Answer: Food
In simple words: Food is essential for survival, making it a necessity, whereas a washing machine makes life easier, making it a comfort.

🎯 Exam Tip: Clearly distinguish between basic survival needs (necessities) and items that make life easier (comforts) when writing examples.

 

Question 5. Free goods : Value-in-use : : Economic goods : ___________
Answer: Value-in-exchange
In simple words: Free goods like air have value because we use them, but economic goods have a price and can be exchanged for money.

🎯 Exam Tip: Remember that economic goods always command a price in the market, which represents their value-in-exchange.

 

Identify and Explain the Concepts from the Given Illustrations

 

Question 1. My father purchased a two-wheeler vehicle. This helps to fulfill my travel needs.
Answer: Comfort Want. Comforts are those wants that make our life comfortable. In the above illustration, the purchase of a two-wheeler vehicle will make my travel easier. It is not a necessity, it is for my comfort. This purchase directly enhances daily convenience and saves travel time.
In simple words: A two-wheeler is a comfort want because it is not essential for survival, but it makes traveling much more convenient and comfortable.

🎯 Exam Tip: First state the concept name clearly, then define it, and finally relate it directly to the given illustration to score full marks.

 

Question 2. A study of the annual income of the family of Ramesh.
Answer: Microeconomics (or Individual Income). Microeconomics deals with the study of individual economic units such as a particular household, individual consumer, or family. Studying the annual income of Ramesh's family represents the analysis of a single economic unit rather than the whole economy. This helps in understanding the financial behavior of individual households.
In simple words: Studying the income of just one family is a microeconomic concept because it looks at a single small unit of the economy instead of the entire country.

🎯 Exam Tip: Whenever a question mentions a specific individual, family, or firm, the concept is always related to microeconomics.

 

Question 3. As per the data for the financial year 2018-19, the country’s production of goods and services increased by 20%.
Answer: Economic Growth. Economic growth means an increase in the real national income of the country. In the above illustration, since the country’s production of goods and services has increased, it is rightly said to be economic growth. This expansion reflects a positive shift in the nation's overall productive capacity.
In simple words: Economic growth happens when a country produces more goods and services than before, making the nation wealthier.

🎯 Exam Tip: Clearly state the economic concept first (Economic Growth) before explaining how the given example fits the definition to secure full marks.

 

Question 4. Karuna’s mother saves Rs. 1000/- every month out of her given salary.
Answer: Savings. Saving is a part of income, which is kept aside to meet future needs. In the above illustration, since Karuna’s mother is foregoing her current consumption, it forms part of her savings. This habit helps in building a financial cushion for emergencies.
In simple words: Saving means setting aside a portion of the money you earn today so you can use it in the future.

🎯 Exam Tip: Remember to mention that saving involves sacrificing current consumption for future security, as this is a key concept examiners look for.

 

Question 5. Ram’s father utilized his provident fund amount to set up the grocery store.
Answer: Investment. Investment refers to the creation of capital assets through mobilisation of savings. In the above case, Mr. Ram’s father mobilises his savings of provident fund into a business of grocery store, which is called as Investment. This process helps in generating future income and employment.
In simple words: Investment is when you use your saved money to start a business or buy things that will help you earn more money later.

🎯 Exam Tip: Highlight the transition of 'savings' into 'capital assets' to clearly distinguish investment from simple saving.

 

Question 1. Explain the features of wealth.
Answer: In economics, wealth is anything that has market value and which commands a price. Wealth is a commodity that can be exchanged for money. A commodity must possess the following features to be considered wealth. These essential characteristics help distinguish economic wealth from free resources.
• Utility
• Scarcity
• Transferability
• Externality

(i) Utility: Utility means the capacity of a commodity to satisfy a human want. A commodity must have to want satisfying power. E.g. books, calculators, etc. have utility. So they are regarded as wealthy.

(ii) Scarcity: A commodity is called wealth, if it is scarce in supply then its demand. All economic goods are considered as wealth because the price is paid for them due to scarcity.

(iii) Transferability: A commodity is called wealth if it can be transferred from one person to another. It includes material or tangible goods. E.g. furniture, car, etc.

(iv) Externality: A commodity is regarded as wealth only if it has externality i.e. it must be external to the human body. E.g. computer. (In the case of transferability, Physical transferability means the actual transfer of goods from one person to another. Whereas, notional transferability refers to the transfer of ownership rights. E.g. land, building, etc.) Internal qualities of human beings like voice, beauty, etc. are neither external nor transferable. So they are not wealthy in an economic sense.
In simple words: For something to be wealth in economics, it must be useful, limited in supply, able to be passed to someone else, and exist outside our own body. Things like our personal talents or free sunlight are not counted as economic wealth.

🎯 Exam Tip: To score full marks, make sure to list and explain all four features—utility, scarcity, transferability, and externality—with appropriate examples for each.

 

Question 2. Explain the characteristics of human wants.
Answer: In the ordinary sense, the word, ‘want,’ and ‘need’ are considered as same. But, in economics, a need is something that is necessary for survival whereas, want is the expression of lack of satisfaction. It enables the person to satisfy his want. Understanding this basic difference is key to analyzing how consumers make choices in the market.
In simple words: In everyday language, needs and wants mean the same thing, but in economics, a need is a basic survival requirement like food, while a want is a specific desire to satisfy that need in a particular way.

🎯 Exam Tip: Always highlight the economic distinction between a 'need' and a 'want' using clear, contrasting definitions.

Characteristics of Wants:

• Wants are unlimited: Wants are multiple. They are never-ending. They arise again and again. When one want is satisfied another arises. Wants go on increasing.
• Wants are recurring in nature: Some of the humans want to occur again and again. They arise even if it is satisfied once. E.g. We take food after a certain time interval to satisfy hunger.
• Wants are complementary: Some wants are complementary to each other. Sometimes, two or more goods are required to satisfy single want. E.g. the want for mobile can be satisfied only when we fulfill the want of a sim card.
• Wants to differ with gender: Wants of men and women are different, as per their needs. E.g. a lady may take Saree while a gentleman wants a Shirt and Tie.
• Wants to differ with age: Human wants to go on changing as age differs. E.g. a baby wants a doll whereas a student wants a book, etc.
• Wants are competitive: We cannot satisfy all our wants at a time because means are limited. So there is competition among wants. That want is preferred first which is most urgent.
• Wants are alternative: Some wants are alternative. E.g. having tea or coffee, using an umbrella or raincoat, etc.
• Wants to differ with culture: Human wants to vary with culture. E.g. an American wants a coat and hat while an Indian wants a kurta.
• Wants to differ with climate: Wants to go on changing with the season. E.g. a person who wants woolen clothes in winter and Ice-cream in summer.
• Wants to differ with preferences: Human wants to differ according to tastes and preferences. Wants are also influenced by the habits of the people. E.g. Person ‘A’ has a preference for books, while Person ‘B’ has a preference for clothes.

State with Reasons Whether You Agree or Disagree with the Following Statements:

 

Question 1. All wants can be satisfied at a time.
Answer: No, I do not agree with the statement. Since human wants are unlimited and resources are scarce, we must prioritize our most urgent needs first.
In simple words: We have too many wants but limited resources, so we cannot satisfy all of them at the same time. We have to choose which ones are the most important to satisfy first.

🎯 Exam Tip: Always state clearly whether you agree or disagree in the very first sentence before providing your detailed economic reasons.

 

Question 2. Human wants change as per the seasons and preferences.
Answer: Yes, I agree with the statement. Human wants are dynamic and are constantly influenced by external and internal factors:
• In the economic sense, a want means a feeling of 'lack of satisfaction'. This feeling enables the person to satisfy his want.
• Human wants differ with seasons. For example, a person requires woolen clothes in winter and an umbrella in the rainy season.
• Wants also differ from preferences, meaning they are influenced by individual habits, tastes, and personal choices.
In simple words: What we want changes depending on the time of year and what we personally like. For example, we want raincoats in the monsoon and cold drinks in the summer.

🎯 Exam Tip: When answering agree/disagree questions, always start with a clear 'Yes, I agree' or 'No, I do not agree' statement to secure the first mark, then provide real-life examples like seasonal clothing to support your answer.

 

Question 3. Value-in-use and Value-in-exchange are the same.
Answer: No, I do not agree with the statement. Value-in-use and value-in-exchange are distinct economic concepts:
• Value-in-use refers to the usefulness of a commodity. Air, water, and sunshine have high value-in-use but do not command a price.
• They are basically free goods provided by nature.
• Value-in-exchange means the value of a commodity expressed in terms of money, which is the price of that commodity.
• For example, cars, TVs, and computers have value-in-exchange because they command a price and are scarce. They are called economic goods. Thus, value-in-use and value-in-exchange are not the same.
In simple words: Value-in-use is how helpful something is to us (like air, which is free), while value-in-exchange is how much money we must pay to buy it (like a mobile phone).

🎯 Exam Tip: Clearly contrast free goods (high value-in-use, no value-in-exchange) with economic goods (high value-in-exchange) to show a strong understanding of this economic paradox.

6. Answer in Detail:

 

Question 1. Explain the basic concepts of macroeconomics.
Answer: Macroeconomics is the study of aggregates covering the entire economy like total employment, national income, national output, total investment, total consumption, total savings, aggregate supply, aggregate demand, and general price level. The basic concepts of macroeconomics include:
1. National Income: This is the total money value of all final goods and services produced in a country during a year.
2. Saving: It is the part of income which is set aside and not spent on current consumption.
3. Investment: It refers to the creation of new capital assets like machinery and buildings using saved money.
4. Trade Cycles: These are ups and downs in business activities, such as inflation (boom) and depression (recession).
5. Economic Growth: It is a quantitative increase in the country's real national income over a long period.
6. Economic Development: It is a qualitative concept that includes economic growth along with structural changes and better living standards.
In simple words: Macroeconomics looks at the big picture of the economy, like the total income of the whole country, total savings, and how the entire nation grows over time, rather than just looking at one person or business.

🎯 Exam Tip: For detailed answers, list at least 4 to 6 key concepts with brief, clear definitions to secure maximum marks.

employment, national income, national output, total investment, total savings, total consumption, aggregate supply, aggregate demand, general price level, etc.

Concepts Of Macro Economics

• National Income: It is the aggregate monetary value of all final goods and services produced in a country during a year.
• Saving: It is that part of income that is not spent currently as consumption in order to satisfy future needs.
• Investment: It means the creation of capital assets through mobilisation of savings, e.g. investment in machinery, equipment, etc.
• Trade Cycles: Fluctuations in business due to inflation and deflation in the economy are called trade cycles.
• Economic Growth: It means an increase in the real income of the country, over a larger period of time. It is a quantitative concept.
• Economic Development: It means economic growth along with progressive changes in the well-being of the people of the country. It is a qualitative concept.

11th Economics Digest Chapter 1 Basic Concept In Economics Intext Questions And Answers

Do You Know? [Textbook Page. No. 1]

 

Question. Who was Kautilya?
Answer: Kautilya was a great statesman, philosopher, economist, and royal advisor during the Mourya period. He is also known as ‘Chanakya’ or ‘Vishnugupta’. He wrote a book called ‘Arthashastra’. His teachings remain highly relevant to modern governance and economic policy.
In simple words: Kautilya was an ancient Indian scholar who helped run an empire and wrote a famous book on economics and politics.

🎯 Exam Tip: Remember both of Kautilya's alternative names, Chanakya and Vishnugupta, as they are frequently asked in multiple-choice questions.

Do You Know? [Textbook Page. No. 2]

 

Question. (a) Who contributed to the field of Environmental Economics?
Answer: Mr. Nordhaus contributed to the field of Environmental Economics. He integrated climate change into long-run macroeconomic analysis.
In simple words: William Nordhaus is a famous economist who won a Nobel Prize for studying how climate change affects the economy.

🎯 Exam Tip: Clearly associate William Nordhaus with Environmental Economics to secure full marks in scientist-related questions.

Question (b) Who won Nobel Memorial Prize in Economics for 2018?
Answer: Paul Romer and William Nordhaus won Nobel Memorial Prize in Economics for 2018. Their groundbreaking research integrated climate change and technological innovations into long-run macroeconomic analysis.
In simple words: Paul Romer and William Nordhaus won the Nobel Prize in 2018 for studying how technology and climate change affect our economy.

🎯 Exam Tip: Always write both names clearly and mention the year to secure full marks in such direct questions.

 

Question. Other Nobel Prize winners in Economics.
Answer: The Nobel Prize winners in Economics from 2010 to 2020 are listed below. This list highlights the diverse contributions of global scholars to modern economic science.

Year	Noble Prize Winners
2010	Dale T. Mortensen, Christopher A. Pissarides, Peter Diamond
2011	Thomas J. Sargent, Christopher A. Sims
2012	Alvin E. Roth, Lloyd Shapley
2013	Robert J. Shiller, Eugene Fama, Lars Peter Hansen
2014	Jean Tirole
2015	Angus Deaton
2016	Bengt Holmstrom, Oliver Hart
2017	Richard Thaler
2018	William Nordhaus, Paul Romer
2019	Abhijit Banerjee, Esther Duflo, Michael Kremer
2020	Paul Milgrom, Robert B. Wilson

In simple words: This table lists the brilliant minds who won the Nobel Prize in Economics from 2010 to 2020 for their outstanding research.

🎯 Exam Tip: Memorize at least two or three prominent winners from recent years, such as Abhijit Banerjee or Richard Thaler, as they are frequently asked in exams.

 

Question. Name the economist belonging to:
Answer: The economists belonging to different schools of thought are categorized below. These schools of thought represent the historical evolution of economic theories over the centuries.

Classical School of Thought of 18th century	Neo-classical School of Thought of 19th and early 20th century	Modern School of Thought from 20th century
Adam Smith, David Ricardo, John Stuart Mill	Alfred Marshall, Carl Menger, A.C. Pigou	John Maynard Keynes, Lionel Robbins, Paul Samuelson

In simple words: Economists are grouped into different 'schools of thought' based on the time period they lived in and their shared ideas about how the economy works.

🎯 Exam Tip: Remember Adam Smith for the Classical school and Alfred Marshall for the Neo-classical school, as these are the most iconic representatives.

Question 1. Complete the table regarding different schools of economic thought.
Answer:

Classical School of Thought of 18th century	Neo-classical School of Thought of 19th and 1st half of 20th century	Modern School of Thought from 20th century till date.
Adam Smith, David Ricardo, J. S. Mill, T. R. Malthus, etc.	Alfred Marshall, A. C. Pigou, Irving Fisher, etc.	J. M. Keynes, Lionel Robbins, Paul Samuelson, etc.

In simple words: Economists are grouped into different schools of thought based on the time period they lived in and their shared ideas about how the economy works.

🎯 Exam Tip: Memorize at least two key economists associated with each school of thought to secure full marks in tabular questions.

Find Out [Textbook Page No. 4]

 

Question 2. Which of the following is 'free good' or 'economic good'?
(i) Water in river
(ii) Oxygen in cylinder
(iii) Sunshine
(iv) Water processed for drinking
(v) Air
Answer:

Free Good	Economic Good
Water in river Sunshine Air	Oxygen in cylinder Water processed for drinking

In simple words: Free goods are gifts of nature that cost nothing, while economic goods require effort or money to produce and obtain.

🎯 Exam Tip: Clearly distinguish between goods that are naturally abundant (free) and those that have an exchange value (economic) to score full marks.

Do You Know? [Textbook Page No. 5]

 

Question 3. What do you mean by Physical transferability and Notional transferability?
Answer: Physical transferability: When goods can be actually transferred from one person to another and from one place to another place it has physical transferability. E.g. Motor Car, Furniture, Machinery, etc. Notional transferability: When goods cannot be physically moved but only their ownership can be transferred from one person to another, it has notional transferability. E.g. Land, Building, etc. This distinction is crucial in economics for understanding how different types of assets are traded in the market.
In simple words: Physical transferability means you can physically hand over the item, like a car. Notional transferability means you can only transfer the ownership papers, like for a piece of land.

🎯 Exam Tip: Use clear examples like a car for physical transferability and land for notional transferability to make your answer highly impactful.

Try This: [Textbook Page No. 5]

 

Question. Prepare a list of commodities that satisfy the condition of physical transferability and notional transferability.
Answer:

Commodities having Physical Transferability	Commodities having Notional Transferability
Motor Car	Land
Furniture	Building
Machinery	Premises
Consumer goods	-

Physical transferability means the item itself can be moved, whereas notional transferability means only the ownership changes while the asset remains in its place.
In simple words: Physical transferability means you can physically move the item (like a car), while notional transferability means you can only transfer the ownership papers (like for land).

🎯 Exam Tip: Clearly distinguish between physical movement and ownership transfer when classifying these commodities to secure full marks.

 

Do You Know? [Textbook Page No. 5]

 

Question. Why are inborn qualities not considered wealth?
Answer: Inborn qualities like beauty, melodious voice, etc. are not considered as wealth because they do not possess all the features of wealth like – externality and transferability. These qualities are internal to a person and cannot be sold or given to someone else.
In simple words: Inborn qualities cannot be separated from a person or transferred to anyone else, so they do not count as economic wealth.

🎯 Exam Tip: Remember to mention 'externality' and 'transferability' as key characteristics of wealth that inborn qualities lack.

 

You Should Know? [Textbook Page No. 5]

 

Question. Explain various types of income?
Answer:

• Fixed income: Income that remains stable over a period of time is called fixed income. It is always positive. E.g. rent, wages, etc.
• Fluctuating income: Income that is not fixed but keeps on changing is called Fluctuating income. E.g. profit. It can be positive, negative, or zero.
• Money income: Income received in the actual currency of the country is called Money income. It is the income in cash, E.g. Rs. 70,000.

Understanding these different forms of income helps in analyzing personal and national economic stability.
In simple words: Income can be fixed (stays the same), fluctuating (changes up and down), or money income (received in actual cash).

🎯 Exam Tip: Provide clear examples for each type of income, such as rent for fixed income and profit for fluctuating income, to write a complete answer.

Types of Income

• Real income: The purchasing power of money income is called Real income. E.g. Commodities purchased out of money income.
• Contractual income: Income paid as per the terms and conditions of the contract is called Contractual income. E.g. rent, wages, etc.
• Residual income: Income that is left over after making payments to all factors of production is called residual income, E.g. profit.
• Earned income: Income obtained after participating in the productive activity is called Earned income. E.g. rent, wages, interest, profit.
• Unearned income: Income received from all sources without indulging in any productive activity is called Unearned income. E.g. windfall gains, lottery prizes.

 

Always Remember [Textbook Page No. 6]

 

Question 1. What activities are considered ‘unproductive’?
Answer: Activities that are carried out just for sake of charity or hobby or where no monetary exchange takes place are considered as ‘unproductive’ activities. These actions do not add direct monetary value to the national economy.
In simple words: Unproductive activities are things we do for fun, hobbies, or charity where no money is exchanged.

🎯 Exam Tip: Clearly mention that the absence of monetary exchange is the key factor that makes an activity 'unproductive' in economics.

 

Do You Know? [Textbook Page No. 7]

 

Question 2. What is ‘Cyclical Unemployment’?
Answer: Unemployment created due to the impact of cyclical fluctuations is called ‘Cyclical Unemployment’. It occurs due to inflation and depression in the economy, which directly affect the demand for labor.
In simple words: Cyclical unemployment happens when people lose their jobs because the economy is going through a bad phase or depression.

🎯 Exam Tip: Remember to link cyclical unemployment with economic phases like inflation, recession, or depression to score full marks.

 

Find Out: [Textbook Page No. 7]

 

Question 3. Which of the following terms is a part of microeconomics or macroeconomics?
(i) Global poverty
(ii) Price of a commodity
(iii) Balance of payments
(iv) Profits of a firm
(v) National income
Answer:
(i) Global poverty - Macroeconomics
(ii) Price of a commodity - Microeconomics
(iii) Balance of payments - Macroeconomics
(iv) Profits of a firm - Microeconomics
(v) National income - Macroeconomics. These classifications help us study individual units versus the entire economy.
In simple words: Microeconomics looks at small, individual things like a single firm's profit or one item's price, while macroeconomics looks at the big picture of the whole country or world, like national income or global poverty.

🎯 Exam Tip: To easily classify these, ask yourself if the term deals with an individual unit (Micro) or the entire economy as a whole (Macro).

 

Question. Classify the following concepts into Micro Economics and Macro Economics: Price of a commodity, Profits of a firm, Global Poverty, Balance of payments, National Income.
Answer:

Micro Economics	Macro Economics
Price of a commodity	Global Poverty
Profits of a firm	Balance of payments
-	National Income

In simple words: Microeconomics looks at small, individual parts of the economy like the price of one product or one company's profit. Macroeconomics looks at the whole picture, like country-wide poverty, national income, or trade with other nations.

🎯 Exam Tip: When classifying economic concepts, remember that 'micro' means small or individual (like a single firm or product), while 'macro' means large or aggregate (like the entire nation's economy).