RBSE Solutions Class 11 Economics Chapter 1 Meaning and Definitions of Economics

RBSE Class 11 Economics Chapter 1 Text book Questions

RBSE Class 11 Economics Chapter 1 Multiple Choice Questions

 

Question 1. Who gave the Wealth-centered Definition?
(a) Marshall
(b) Samuelson
(c) Adam Smith
(d) Robbins
Answer: (c) Adam Smith
In simple words: Adam Smith, often called the father of economics, defined economics by focusing on wealth. He believed economics is mainly about how nations create and manage wealth.

🎯 Exam Tip: Remember Adam Smith's key work "An Inquiry into the Nature and Causes of the Wealth of Nations" to link him with the wealth-centered definition.

 

Question 2. Who gave the economic welfare related definition of economics?
(a) Marshall
(b) Pigou
(c) Adam Smith
(d) Robbins
Answer: (b) Pigou
In simple words: The idea that economics should mainly study how to improve human well-being and welfare was proposed by the economist Pigou. He focused on how economic activities impact people's quality of life.

🎯 Exam Tip: When thinking about "welfare," think of economists like Pigou who shifted the focus from just wealth to the overall well-being of people.

 

Question 3. "Economics is a study of economic welfare”. This definition is related with
(a) Wealth-centered definition
(b) Economic development-related definition
(c) Welfare-centered definition
(d) Scarcity-centered definition
Answer: (c) Welfare-centered definition
In simple words: This definition puts human welfare at the core of economics. It means that economists study how people's well-being can be improved through economic actions and policies.

🎯 Exam Tip: Identify keywords like "welfare" in a definition to correctly associate it with the welfare-centered school of thought in economics.

 

Question 4. Relation of human's unlimited wants with limited resources is shown in to definition?
(a) Wealth-centered definition
(b) Economic-growth related definition
(c) Scarcity-centered definiti
(d) Welfare-related definition
Answer: (c) Scarcity-centered definition
In simple words: This definition highlights that people always want more than what is available. It studies how humans make choices because resources are limited, but their desires are endless.

🎯 Exam Tip: Scarcity is a fundamental concept in economics, emphasizing that our desires are infinite but the means to fulfill them are finite.

 

Question 5. Which economist agrees that economics is a Positive science?
(a) Marshall
(b) Pigou
(c) Robbins
(d) J.S.Mill.
Answer: (c) Robbins
In simple words: Robbins believed economics should describe what is, not what ought to be. He saw it as a "positive science" that explains economic choices and behavior without making judgments.

🎯 Exam Tip: Distinguish between positive economics (describes and explains) and normative economics (prescribes what should be). Robbins supported positive economics.

RBSE Class 11 Economics Chapter 1 Very Short Answer Type Questions

 

Question 2. Give the wealth-centred definition of economics given by Adam Smith.
Answer: According to Adam Smith, "Economics is the science of wealth." He believed that the main focus of economics should be on studying how countries create, accumulate, and distribute their wealth.
In simple words: Adam Smith said economics is all about the study of wealth.

🎯 Exam Tip: When asked about Adam Smith, remember his core idea that economics is essentially the study of wealth.

 

Question 3. Give the scarcity-related definition of economics.
Answer: The scarcity-related definition states, "Economics is a science that studies human behavior that is related to human wants on the limited means (resources) which have multiple utilities.” This means it looks at how people make choices when their desires are endless, but the resources to fulfill them are limited.
In simple words: Economics studies how people choose to use limited resources to satisfy their many wants.

🎯 Exam Tip: Always include the key concepts of "unlimited wants," "limited resources," and "choice" when defining scarcity-related economics.

 

Question 4. Marshall described economics as which type of science?
Answer: Marshall explained economics as a social science. He focused on how economic activities impact human welfare within society, rather than just on wealth.
In simple words: Marshall called economics a social science.

🎯 Exam Tip: Recall that Marshall's definition connects economics directly to the study of human well-being and social aspects.

 

Question 5. Which economist defined economics as the science of selection?
Answer: Robbins has defined economics as a science of choice. His definition emphasizes that since resources are scarce and have alternative uses, individuals and societies must constantly make choices.
In simple words: Robbins said economics is the science of making choices.

🎯 Exam Tip: Link Robbins' definition directly to the idea of making choices due to limited resources and unlimited wants.

 

Question 6. According to Robbins economics is which type of science?
Answer: According to Robbins, economics is a science of choices. It focuses on the problem of resource allocation among competing wants, highlighting that humans must choose how to use their limited means.
In simple words: Robbins saw economics as a science focused on how people make choices.

🎯 Exam Tip: The concept of "choice" is central to Robbins' definition, making economics a decision-making science.

 

Question 7. What is J.K.Mehta's definition of economics based on 'Wantlessness'?
Answer: Mehta has defined Economics as, "a science which studies human behavior as a means to end wantlessness." He believed that true economic well-being comes from reducing wants, not endlessly fulfilling them.
In simple words: Mehta defined economics as studying human behavior to achieve a state where wants no longer exist.

🎯 Exam Tip: J.K. Mehta's definition is unique in its focus on "wantlessness" as the ultimate economic goal, contrasting with Western views of want-satisfaction.

 

Question 2. According to Marshall, “The main subject of economics is human welfare and not wealth.” Explain this.
Answer: According to Marshall, the objective of economics is not only to analyze the nature and origin of wealth. A more important goal than creating wealth is to fulfill human needs and increase physical welfare. Marshall placed more emphasis on the economic welfare of people rather than just on accumulating wealth. This view shifted the focus of economics towards improving human living conditions.
In simple words: Marshall believed economics should focus on improving people's well-being and welfare, not just on getting rich.

🎯 Exam Tip: Highlight Marshall's shift from a purely wealth-centric view to a human welfare-centric perspective as a key point.

 

Question 3. What is an economic problem according to Robbins?
Answer: According to Robbins, human needs are endless and unlimited. To fulfill these many desires, people have limited time and money. This means people must choose which wants to satisfy first. Since these limited resources can be used in different ways, the choice of what to fulfill becomes crucial. This constant need to choose among various desires, given limited means, is what creates the economic problem.
In simple words: For Robbins, an economic problem is about making choices because people have endless wants but only limited resources.

🎯 Exam Tip: Clearly state the three core components of Robbins' economic problem: unlimited wants, limited resources, and alternative uses of resources, leading to choice.

 

Question 4. Mention any two similarities between the definitions of Marshall and Robbins.
Answer:
1. Marshall, in his definition, saw maximum welfare as important for economics, while Robbins focused on efficient use of resources. However, both economists' ideas lead to a shared goal of "Maximum satisfaction" for people. They both seek to understand how people can get the most out of their economic activities.
2. Marshall used the word "Wealth" in his definition, while Robbins used the term "limited resources." To some extent, these terms are used similarly because scarcity is a key feature of wealth; it's limited, making its careful management essential.
In simple words: Both Marshall and Robbins wanted to achieve maximum satisfaction and both recognized the limited nature of resources (wealth).

🎯 Exam Tip: Focus on the underlying goals (satisfaction, efficient resource use) and conceptual overlaps (wealth as limited) to identify similarities between the two definitions.

 

Question 6. What are the main elements of the development-based definition of economics?
Answer: The key elements of the development-based definition are the following:
1. More importance has been given to human habits of selection and limitation of resources (means). This view highlights that people make choices about how to use their limited means.
2. Under the barter system, the problem of distribution of resources (means) has been considered important. How goods and services are shared among people is a key concern.
3. Both Marshall's and Robbins' definitions have been included in the developmental (evolutionary) definitions. This shows a progression in economic thought, integrating past ideas.
4. The developmental definition has a dynamic perspective. This means it views economics as constantly changing and evolving, rather than being static.
In simple words: This definition focuses on human choices, how resources are shared, includes older ideas, and sees economics as always changing and growing.

🎯 Exam Tip: When discussing development-based definitions, emphasize the forward-looking, evolving nature of economic thought and the integration of previous perspectives.

RBSE Class 11 Economics Chapter 1 Long Answer Type Questions

 

Question 1. Write down a critical analysis of Marshall's and Robbins' definitions.
Answer: Major criticisms of Marshall's definition are as follows:
Marshall's definition was welfare-centered, and here are its criticisms:

• Excessive emphasis on wealth: The wealth-related definition focused too much on wealth itself as the main goal. However, earning wealth is not an end but a way to achieve other goals.
• Hypothesis of economic man is inappropriate: Early economists believed people only worked for wealth or selfish reasons. But this idea is wrong. Humans are also motivated by feelings like compassion and love, not just money.
• Classification of resources: Marshall mainly studied how to get and use physical wealth. But in reality, non-physical resources like the services of doctors, engineers, and advocates also create resources and are studied in economics.

According to Robbins, economics can relate to anything but is not about public welfare. Robbins found the welfare-focused approach flawed for these reasons:

• Activities not for welfare: Many activities, like producing harmful substances, are not good for human welfare but are still studied in economics.
• No clear measure for welfare: There's no definite way to measure welfare. Money can't be a perfect measure because welfare is a feeling, a psychological state.
• Economics as a Positive Science: When economics is linked to welfare, it becomes a normative science (what should be). Robbins treated economics as a positive science, meaning it just studies what is, not what is right or wrong.
• Skewed scope of economics: His definition was criticized because it overlooked the acquisition and use of non-physical resources. Studying anti-social, unusual, and non-economic activities became a reason for criticism.

Economists also found fault with Robbins' definition. Some key criticisms are:

• Scope of economics became too wide: By defining economics as a human science, Robbins made all human activities related to choice part of economics. This expanded the study of economics, making it very complex to explain and analyze economic principles.
• Inadequate focus on social character: Robbins' definition also includes the activities of people outside society. However, economic problems become truly important when they have a social impact and affect groups of people.
• Economics is not just a value theory: Robbins' definition focused on how resources are shared to make goods and how their value and price are set. But economics is much broader than just allocating resources and setting values.
• Definition is situational: Robbins assumed that accomplishments are fixed, but in real life, both accomplishments and resources are always changing, making choices continuous.
• Reason for economic problems: Robbins said scarcity causes economic problems. Critics argue that economic problems arise not only from scarcity but also from an abundance or excess of resources.

In simple words: Marshall's definition was criticized for focusing too much on wealth and not enough on other human motivations or non-physical resources. Robbins' definition, while good for highlighting scarcity and choice, was criticized for making economics too broad and not focusing enough on social issues or the complexities of welfare.

🎯 Exam Tip: For critical analysis questions, structure your answer by first stating the definition's core idea, then presenting points of criticism clearly, and finally, summarizing the overall strengths and weaknesses.

 

Question 2. Write down a critical analysis of Welfare-centered definition?
Answer: Marshall's definition was welfare-centered, and here are its criticisms:

• Classification of resources on the basis of physical and non-physical nature: Marshall mainly limited the study of economics to getting and using physical resources. But in truth, there are also non-material resources, like the services of doctors, engineers, and advocates, who create resources. The study of these services is also part of economics.
• Economics is not only a social science: Saying economics is only a social science is not right. This is because economic rules apply to people both inside and outside society in the same way. So, economics is also considered a human science.
• Relating economics to physical welfare is inappropriate: According to Robbins, economics might relate to many things, but it's not directly about public welfare. Robbins believed the welfare-focused approach was flawed for specific reasons.
• Many activities not for welfare are studied: For example, making and using harmful drugs is not good for human welfare, but it is still studied in economics.
• No clear way to measure welfare: There isn't a standard way to measure welfare. Money cannot be seen as a true measure of welfare because welfare is a personal, emotional feeling.
• Scope of economics became too wide: This criticism states that by focusing on welfare, the study of economics neglected the acquisition and use of non-physical resources. It also included anti-social, uncommon, and non-economic activities, which made its scope too broad.

In simple words: The welfare-centered definition was criticized because it focused only on physical resources, sometimes ignored activities not directly linked to welfare, and didn't have a clear way to measure happiness. It also broadened the scope of economics too much.

🎯 Exam Tip: When criticizing the welfare-centered definition, ensure you explain why "welfare" itself is difficult to define and measure objectively in economic terms, and how it limits the scope to only "good" activities.

 

Question 3. Explain the similarities and dissimilarities between Marshall's and Robbins' definition.
Answer:
Similarities between Marshall's and Robbins' definitions:
1. Both Marshall and Robbins, in their definitions, considered economics as a science. They believed it to be a systematic study.
2. Both economists prioritized humans first, and then resources. This means that human decisions and needs are central to economic analysis.
3. In Marshall's theory, maximum welfare was the central point, while Robbins focused on making the best use of resources. However, both economists aimed for the same ultimate outcome: maximum satisfaction.
4. Marshall used the word 'wealth,' while Robbins used 'limited resources.' To some extent, these two terms have similar meanings, as scarcity is a main characteristic of wealth.
5. Professor Robbins stated that limited resources must be used carefully to ensure maximum production for the benefit of most people. Similarly, Professor Marshall also saw maximum welfare as the primary goal. Both recognized the need for careful management.

Difference between the two definitions:

• Difference in nature of definition: Marshall's definition of economics is descriptive and categorizes economic activities, while Robbins' definition is analytical, focusing on the process of choice. Marshall included all physical or non-material, economic or non-economic activities as part of economics in normal life. In contrast, Robbins didn't separate activities but included the study of making choices as the core economic problem.
• Difference in contents: Marshall included monetary activities related to earning and spending money in economics. On the other hand, Robbins studied human behavior regarding choices and considered this process of selection an economic aspect or problem.
• Classification of resources: Marshall only included economic physical resources in the study of economics. However, Robbins included all types of resources-physical and non-physical-that are scarce in his definition.
• Nature of Economics: Marshall believed economics is both a positive and a normative science, also classifying it as an art. Robbins, however, viewed economics as an empirical science, focusing on what is, rather than what ought to be.
• Difference in Objective: Professor Marshall explained that the goal of economics is to improve human welfare. In contrast, according to Robbins, economics has no such objectives and explicitly stated there is no link between human welfare and economics.

In simple words: Both Marshall and Robbins saw economics as a science focused on human well-being and managing limited resources for satisfaction. But they differed in how they defined it: Marshall included all activities and aimed for welfare, while Robbins focused on the analytical process of choice due to scarcity and didn't link it directly to welfare.

🎯 Exam Tip: When comparing, create two clear sections for "Similarities" and "Dissimilarities." Use bullet points for easy readability and ensure each point highlights a specific comparative aspect, such as scope, objective, or methodology.

 

Question 4. Examine the criticisms of Economic Growth definition? Explain the Indian ideology related to this.
Answer: Today is an age of growth, and because of this, the definitions of economics are also changing. Modern Nobel Prize-winning economists, like Prof. Samuelson, Peterson, and Ferguson, have also defined economics based on growth. Samuelson gave more importance to human choices and resource limitations but did not emphasize the means or how they are allocated, nor did he provide solutions to overcome problems.

He only pointed out problems without offering solutions. Samuelson didn't introduce new ideas in the concept of development; Marshall's and Robbins' definitions already covered these aspects. K.G. Seth also stressed the importance of means, similar to Samuelson. These economists did not focus on money or financial welfare; their main emphasis was on development. The economists who gave development-related definitions primarily focused on the means but did not link economics with human welfare, physical welfare, or economic welfare.

Indian ideology on development-related definitions:
Professor Mehta's definition, based on Indian philosophy, civilization, and culture, is quite different from Western views. Western economists believe economic growth means satisfying needs. However, according to Indian ideology, satisfaction doesn't come from fulfilling maximum needs, but by eliminating desires. The Indian view holds that unlimited desires can never be fully satisfied, as new wants keep arising.
In simple words: The economic growth definition was criticized for only pointing out problems without solutions and not linking economics to human welfare. Indian thinking, especially by J.K. Mehta, sees true satisfaction in reducing desires, not just fulfilling them, which is very different from Western ideas.

🎯 Exam Tip: For this type of two-part question, first address the criticisms of the economic growth definition, and then clearly explain the distinct characteristics of the Indian ideology, highlighting its unique philosophical basis.

 

Question 6. Critically explain the scarcity centred definition of economics.
Answer: The scarcity-centered definition was given by Robbins. Economists do not find Robbins' definition flawless. Here are the main criticisms of this definition:

• Making the scope of economics wider than human wants: Professor Robbins, by defining economics as a human science, made all alternative aspects of human activities the subject matter of economics. This greatly expanded the study of economics, making it too complex to demonstrate economic principles, analyze, and investigate problems.
• Inadequate concentration on social character of economics: According to Robbins, economic activities of people living outside society are also studied. However, economics is truly needed when economic problems become socially important and affect groups of people.
• Economics is not only a value theory: Robbins' definition focuses mainly on how resources are distributed to produce various goods and how their value and price are determined. But the scope of economics is much broader than just resource allocation and value setting.
• Neutrality towards objectives: Robbins argued that economics is not just about sources but also about setting objectives for which limited resources are used. If objectives are unclear, maximum utilization of resources cannot be ensured.
• Economics is not only a real science but also an art: If economics is seen only as a real science for building principles, critics believe its role isn't just to build equipment but also to explain how to use it effectively.
• Definition is situational: Professor Robbins considered accomplishments as given and stable, believing a coordination exists between these and resources. However, in reality, both factors keep changing, meaning choices are dynamic.
• Reason for economic problems: Robbins stated that scarcity leads to economic problems. Critics argue this isn't entirely true; economic problems arise not only from scarcity or limited resources but also from excessive or ample availability, which can lead to other issues.

In simple words: Robbins' scarcity definition was criticized for making economics too broad by including all human choices. It was also seen as not focusing enough on social problems and being too neutral about goals. Critics argued that economics is more than just about scarcity, also involving how we use what we have and dealing with problems of too much.

🎯 Exam Tip: When explaining criticisms of the scarcity-centered definition, ensure you explain how the broadness of "human choices" and the lack of social context dilute the definition's practical application.

RBSE Class 11 Economics Chapter 1 Other Important Questions

RBSE Class 11 Economics Chapter 1 Objective Type Questions

 

Question 1. Who has called economics the 'queen of social science'?
(a) Adam Smith
(b) Marshall
(c) Samuelson
(d) Pigou
Answer: (c) Samuelson
In simple words: Samuelson gave economics the title of 'queen of social science' because of its wide reach and importance in understanding human society.

🎯 Exam Tip: Remember specific phrases or titles associated with key economists, such as Samuelson's "queen of social science" for economics.

 

Question 2. How are the resources described in the view of economics?
(a) Scarce
(b) Unlimited
(c) Sufficient
(d) More
Answer: (b) Unlimited
In simple words: In economics, resources are often considered scarce because human wants are unlimited, making it impossible to satisfy everyone's desires fully. However, the options given here are for how wants are viewed. Resources themselves are limited, but the *wants* are unlimited. Given the options and the likely intent of the question in context of a scarcity definition, it appears to be asking about the nature of wants rather than resources. If it refers to *wants*, then they are unlimited. If it refers to *resources*, they are scarce. Based on the provided answer (b) Unlimited, it implies the question is about *wants*. Let me rephrase for clarity in the answer to match the provided option.
Answer: (a) Scarce
In simple words: From an economic point of view, resources are described as scarce. This means there isn't enough of everything for everyone to have all they want, leading to choices.

🎯 Exam Tip: Always relate resource description to scarcity; resources are always limited, while human wants are usually unlimited.

 

Question 4. "Where there are 6 economists, there are 7 opinions,” Who said this?
(a) Marshall
(b) Pigou
(c) Mrs. Barbara Wotten
(d) Samuelson
Answer: (c) Mrs. Barbara Wotten
In simple words: This humorous quote, often used to show how diverse opinions can be in economics, was made by Mrs. Barbara Wotten.

🎯 Exam Tip: Recognize famous quotes related to economics and attribute them to the correct individuals to score full marks.

 

Question 5. Who wrote the book, "An Enquiry into the Nature and Causes of Wealth of Nations"?
(a) Marshall
(b) Samuelson
(c) Adam Smith
(d) Pigou
Answer: (c) Adam Smith
In simple words: This important book, which laid the foundation for modern economic thought, was written by Adam Smith.

🎯 Exam Tip: Adam Smith's "The Wealth of Nations" is a landmark text; knowing its author is crucial for understanding economic history.

 

Question 6. "Economics is the science of wealth", who said this?
(a) Adam Smith
(b) Pigou
(c) Samuelson
(d) Marshall
Answer: (a) Adam Smith
In simple words: Adam Smith, an early economist, believed that the main goal of economics was to study how wealth is created and managed.

🎯 Exam Tip: This phrase is the core of the classical definition of economics, strongly linked to Adam Smith's work.

 

Question 7. The book "An Enquiry into the Nature and Causes of Wealth of Nations" was published in the year:
(a) 1776
(b) 1881
(c) 1907
(d) 1700
Answer: (a) 1776
In simple words: Adam Smith's influential book, "The Wealth of Nations," which founded modern economics, was published in the year 1776.

🎯 Exam Tip: Knowing the publication year of key economic texts helps in understanding the historical development of economic thought.

 

Question 8. Which economist gave more emphasis on the economic welfare of humans instead of wealth?
(a) Smith
(b) Pigou
(c) Marshall
(d) Robbins
Answer: (c) Marshall
In simple words: Marshall shifted the focus of economics from just accumulating wealth to how economic activities contribute to the overall well-being and welfare of people.

🎯 Exam Tip: When discussing welfare, remember that Marshall expanded on the wealth definition by emphasizing human well-being.

 

Question 9. Who wrote the book, "An Essay on the Nature and Significance of Economic Science”?
(a) Smith
(b) Robbins
(c) Pigou
(d) Marshall
Answer: (b) Robbins
In simple words: This book, which explains the scarcity-centered definition of economics, was written by Robbins.

🎯 Exam Tip: Associate Robbins' name with the essay that clarifies the importance of scarcity and choice in economic science.

 

Question 10. According to Robbins, what kind of science is economics?
(a) Idealistic Science
(b) Empirical Science
(c) Physical Science
(d) All of the options
Answer: (b) Empirical Science
In simple words: Robbins considered economics an empirical science because it studies real-world facts and observations about how people make choices without making value judgments.

🎯 Exam Tip: Empirical science relies on observation and experience, aligning with Robbins' view of economics as studying actual human behavior regarding scarcity.

 

Question 1. On which two bases is the framework of economics built?
Answer: The framework of economics is built on two main bases:
1. Resources
2. Necessities
Economics fundamentally deals with how scarce resources are allocated to satisfy unlimited human necessities or wants.
In simple words: Economics is built on understanding resources and human needs.

🎯 Exam Tip: These two elements – resources and needs – are the foundational pillars upon which all economic study rests.

 

Question 2. "Where there are 6 economists, there are 7 opinions,” Who said this?
Answer: This famous quote was said by Mrs. Barbara Wotten. It highlights the wide range of perspectives and disagreements often found among economists.
In simple words: Mrs. Barbara Wotten made this famous statement about economists having many different ideas.

🎯 Exam Tip: Remembering such quotes helps demonstrate a broader understanding of the subject and its historical context.

 

Question 3. Which economists have given wealth-centered definitions?
Answer: Economists like Prof. Adam Smith, J.B. Say, and Walker have given wealth-centered definitions. They focused on economics as the study of wealth creation and management.
In simple words: Adam Smith, J.B. Say, and Walker were some economists who defined economics by focusing on wealth.

🎯 Exam Tip: List key classical economists such as Adam Smith, J.B. Say, and Walker when asked about wealth-centered definitions.

 

Question 4. Write the name of Adam Smith's Book.
Answer: The name of Adam Smith's book is "An Enquiry into the Nature and Causes of Wealth of Nations.” This book is considered a foundational text in modern economics.
In simple words: Adam Smith's famous book is "An Enquiry into the Nature and Causes of Wealth of Nations."

🎯 Exam Tip: Always remember the full title of "The Wealth of Nations" as it's a key piece of economic literature.

 

Question 5. Mention the definition of economics given by Adam Smith.
Answer: The definition of economics given by Adam Smith is: "Economics is the science of wealth.” He saw economics as primarily concerned with understanding how nations acquire and grow wealth.
In simple words: Adam Smith defined economics as the science that studies wealth.

🎯 Exam Tip: Quote Adam Smith's definition accurately, as it's a direct and fundamental statement about the classical view of economics.

 

Question 6. "Economics is that body which relates to wealth.” Which economist has given this definition?
Answer: This definition was given by economist Walker. He emphasized the connection between the study of economics and the concept of wealth.
In simple words: Economist Walker defined economics as the study that deals with wealth.

🎯 Exam Tip: Be precise when attributing specific definitions to different economists, as several early thinkers focused on wealth.

 

Question 8. Which economist gave more emphasis on the economic welfare of humans instead of wealth?
Answer: Marshall was the economist who put more importance on the economic well-being of people rather than just focusing on wealth.
In simple words: Marshall believed that people's well-being was more important than just having a lot of money.

🎯 Exam Tip: Remember to link key economists with their main ideas, like Marshall with welfare and Adam Smith with wealth.

 

Question 9. Who wrote the book, "An Essay on the Nature and Significance of Economic Science”?
(a) Smith
(b) Robbins
(c) Pigou
(d) Marshall
Answer: (b) Robbins
In simple words: The book "An Essay on the Nature and Significance of Economic Science" was written by Robbins.

🎯 Exam Tip: Knowing the authors of famous economic books helps in understanding the foundations of economic thought.

 

Question 10. According to Robbins, what kind of science is economics?
(a) Idealistic Science
(b) Empirical Science
(c) Physical Science
(d) All of these
Answer: (b) Empirical Science
In simple words: Robbins believed economics is an empirical science, meaning it is based on real-world observation and experience, not just ideals.

🎯 Exam Tip: Differentiate between different classifications of economics (e.g., positive, normative, empirical) and associate them with the economists who proposed them.

 

Question 11. What is the name of Robbins' Book?
Answer: The name of Robbins' book is "An Essay on Nature and Significance of Economic Science."
In simple words: Robbins' book is called "An Essay on Nature and Significance of Economic Science."

🎯 Exam Tip: It is good practice to recall the full title of significant economic works to show comprehensive knowledge.

 

Question 12. Who called the welfare centric definition narrow and misleading?
Answer: Robbins was the one who considered the welfare-centric definition of economics to be narrow and not fully accurate.
In simple words: Robbins felt the welfare-focused definition was too limited and didn't show the whole picture.

🎯 Exam Tip: Understand the critiques of each definition, as economists often build on or challenge previous ideas.

 

Question 13. Who criticized the definition given by Marshall and his supporting economists?
Answer: Robbins criticized the definition of economics given by Marshall and other economists who supported it.
In simple words: Robbins criticized Marshall's definition of economics.

🎯 Exam Tip: Identifying key critics helps in understanding the evolution and different schools of thought in economics.

 

Question 14. According to Robbins, what kind of science is economics?
Answer: According to Robbins, economics is a science that deals with the limited availability of economic resources.
In simple words: Robbins believed economics is about managing scarce resources.

🎯 Exam Tip: Always associate Robbins with the concept of scarcity in economics definitions.

 

Question 16. What is the center point in Marshall's definition?
Answer: Marshall focused on achieving maximum welfare as the central point in his definition of economics. He believed the goal of economic activity was to improve human well-being.
In simple words: Marshall's definition of economics was mainly about getting the most well-being for people.

🎯 Exam Tip: When discussing Marshall, always highlight his emphasis on welfare and ordinary business of life.

 

Question 17. What kind of resources have been included by Marshall in economics?
Answer: Marshall included physical resources in his definition of economics. These are tangible assets used for production and consumption.
In simple words: Marshall included only physical things, like land and goods, as resources in economics.

🎯 Exam Tip: Note the distinction between physical and non-physical resources as different economists emphasized different aspects.

 

Question 18. According to Professor Marshall, what kind of science is economics?
Answer: According to Professor Marshall, economics is a social science. He saw it as a study of human behavior in ordinary life related to wealth and welfare.
In simple words: Marshall saw economics as a social science because it studies how people behave in society.

🎯 Exam Tip: Clearly state the classification of economics by each major economist (e.g., social, human, empirical) as it reflects their core philosophy.

 

Question 19. What kind of science is economics according to Robbins?
Answer: Robbins considered economics to be a human science. He focused on human behavior in making choices with limited resources.
In simple words: Robbins thought economics was a human science, looking at how people make choices.

🎯 Exam Tip: Remember Robbins' emphasis on human choice and scarcity when classifying economics.

 

Question 20. What has Robbins said about the selection process?
Answer: Robbins described the selection process as an economic problem. He highlighted that people constantly face choices due to unlimited wants and limited resources.
In simple words: Robbins called the act of choosing what to do with limited resources an economic problem.

🎯 Exam Tip: Link Robbins' ideas directly to the concept of choice and scarcity as fundamental economic problems.

 

Question 21. Who gave the definition of 'wantlessness' of economics?
Answer: Professor J.K. Mehta gave the definition of 'wantlessness' in economics. He believed true happiness comes from reducing desires.
In simple words: J.K. Mehta defined economics by linking it to the idea of reducing wants to find happiness.

🎯 Exam Tip: Be sure to associate J.K. Mehta with the unique concept of 'wantlessness' in economic thought.

 

Question 23. Into how many areas is the definition of economics divided?
Answer: For easier study, the definition of economics is typically divided into five main parts or areas. This helps to understand its different aspects.
In simple words: Economics definitions are usually split into five major parts for simpler understanding.

🎯 Exam Tip: Listing these five areas can earn full marks in a descriptive answer, even if not explicitly asked for here.

 

Question 24. Tell the names of two economists who agree with the idea of Adam Smith?
Answer: J.B. Say and Walker were two economists who supported Adam Smith's ideas about economics, especially his focus on wealth.
In simple words: J.B. Say and Walker agreed with Adam Smith's economic views.

🎯 Exam Tip: Knowing which economists aligned with certain theories helps in mapping the historical development of economic thought.

 

Question 25. What do classical economists believe?
Answer: Classical economists believed that the main goal of human economic activities is to make money and accumulate wealth. They thought earning wealth was the ultimate purpose.
In simple words: Classical economists thought the main goal of economics was to make money.

🎯 Exam Tip: Connect classical economists primarily with the wealth-centric definition of economics.

 

Question 26. Why does Robbins consider economics as an empirical science?
Answer: Robbins considers economics an empirical science because it studies situations as they are, without making judgments about what is good or bad. It observes and analyzes rather than prescribing.
In simple words: Robbins sees economics as empirical because it looks at facts as they are, without saying what should be.

🎯 Exam Tip: Emphasize that empirical science focuses on observation and analysis, not value judgments, to clearly explain Robbins' view.

 

Question 27. It is unfair to consider economics as just a social science. Why?
Answer: It is unfair to call economics only a social science because its rules and principles apply equally to people both within and outside society. This suggests a broader application.
In simple words: Economics rules apply to everyone, not just those in society, so it's more than just a social science.

🎯 Exam Tip: Consider the scope of economic principles – they often extend beyond social interactions to individual decision-making.

 

Question 28. It is only after attaining mental balance, that a person feels happy. Who said this?
Answer: Professor J.K. Mehta stated that true happiness comes when a person achieves mental balance, implying a state free from excessive wants.
In simple words: Professor J.K. Mehta said that happiness comes from having a calm and balanced mind.

🎯 Exam Tip: This quote relates to the concept of 'wantlessness' and is characteristic of J.K. Mehta's philosophical approach to economics.

 

Question 30. Who has considered economics as a study of the physical welfare of humans?
Answer: Marshall considered economics as a study focused on the physical well-being of humans, connecting it to the acquisition and use of material resources.
In simple words: Marshall saw economics as the study of how people improve their physical welfare.

🎯 Exam Tip: Marshall's definition often links economics to "material welfare" or "physical welfare."

 

Question 31. Who were the supporters of welfare-centric definitions?
Answer: Marshall, Pigou, and Stuart Mill were among the main supporters of welfare-centric definitions of economics. They believed economic activity should aim for human well-being.
In simple words: Marshall, Pigou, and Stuart Mill believed economics should focus on people's welfare.

🎯 Exam Tip: Grouping economists by their shared perspectives (e.g., welfare-centric) helps in remembering their contributions.

 

Question 32. Write two criticisms of Professor Mehta's approach towards economics.
Answer: Two main criticisms of Professor Mehta's approach to economics are:
1. It is hard to imagine a person being completely 'wantless' in today's world, where desires are always present.
2. His idea of maximum happiness, achieved by reducing wants, is seen as contradictory by critics.
In simple words: Critics say it's tough for people to have no wants in modern life, and Mehta's idea of happiness by reducing wants seems to conflict with itself.

🎯 Exam Tip: When presenting criticisms, it's effective to clearly number each point for readability and impact.

 

Question 33. Define economics according to J.B. Say.
Answer: According to J.B. Say, "Economics is the science which studies wealth." This definition aligns with the classical view that focused on wealth accumulation.
In simple words: J.B. Say defined economics as the study of wealth.

🎯 Exam Tip: J.B. Say's definition is a clear example of the wealth-centric approach in classical economics.

 

RBSE Class 11 Economics Chapter 1 Short Answer Type Questions

 

Question 1. Why was the wealth-centered definition of economics criticized?
Answer: The wealth-centered definition of economics was criticized because it focused too much on money, leading to misunderstandings. It made it seem like people were only motivated by wealth, when in reality, money is just a tool to improve human life, not the ultimate goal. This narrow view was deemed inappropriate.
In simple words: People criticized the wealth-focused definition because it made economics seem only about money, when money is just a tool for living better, not the whole point.

🎯 Exam Tip: Highlight how the early definitions were seen as too narrow and overlooked human welfare or ethical considerations.

 

Question 3. Give the 'welfare-centered' definition of Marshall.
Answer: According to Marshall, "Economics is the study of general occupations of humans. In this view, it evaluates the part of personal and social activities that are intentionally linked to getting and using resources for physical welfare." Marshall believed economics should study how people achieve well-being in their daily lives.
In simple words: Marshall said economics is about how people live and use resources to improve their physical well-being.

🎯 Exam Tip: Mentioning Marshall's focus on "ordinary business of life" along with welfare strengthens the answer.

 

Question 4. What is the meaning of economic problem or the problem of choice?
Answer: The economic problem, also known as the problem of choice, arises because human needs are endless, but the resources to satisfy them are limited. Since these limited resources can be used in different ways, people must choose which needs to fulfill first. This fundamental dilemma is what economists refer to as the problem of choice.
In simple words: The economic problem is about choosing which needs to meet first because people have endless wants but not enough resources, and these resources can be used in many ways.

🎯 Exam Tip: Clearly defining scarcity and alternative uses of resources is crucial when explaining the problem of choice.

 

Question 5. What is the meaning of scarcity of the resources or means?
Answer: Scarcity of resources (or means) means that the amount of things needed to create wealth—like land, labor, and capital—is less than what is demanded. This problem gets worse because these limited resources can also be used for many different things. So, people have to decide which needs to address now and which ones to delay.
In simple words: Scarcity means there aren't enough resources like land or workers to meet all demands, especially since these resources can be used for different purposes. This makes people prioritize.

🎯 Exam Tip: When defining scarcity, emphasize both the limited availability and the alternative uses of resources.

 

Question 7. State two points of definition of Marshall.
Answer: Two key aspects of Marshall's definition of economics are:
• Marshall gave more importance to human welfare than just wealth, stating that 'wealth is for human, and not human for wealth.' This means human well-being is more significant.
• He emphasized the social, normal, and empirical study of human life, focusing on economic activities undertaken by social, normal individuals, excluding isolated or abnormal behaviors.
In simple words: Marshall believed that human well-being is more important than just having wealth. He also said that economics should study the everyday activities of ordinary people in society.

🎯 Exam Tip: When asked for points of a definition, provide clear, concise statements that capture the core ideas of the economist.

 

Question 8. State the two criticisms of the definitions based on physical welfare.
Answer: Two criticisms of definitions focusing on physical welfare are:
• **Classification of resources on physical and non-physical nature:** This approach limits the study of economics to only physical resources. However, in reality, non-material resources, such as services from doctors, engineers, and lawyers, also create value and are part of economic study.
• **Economics is not solely a social science:** Critics argue that treating economics only as a social science is incorrect. Economic rules apply to individuals whether they are part of a society or acting alone, suggesting a broader scope.
In simple words: One criticism is that these definitions only look at physical resources, ignoring services from professionals. Another is that economics is not just a social science because its rules apply to everyone, not just groups of people.

🎯 Exam Tip: When providing criticisms, ensure each point clearly explains why the original definition is considered limited or flawed.

 

Question 9. Economics is a human science. How?
Answer: Economics is considered a human science because its principles and rules, which are its subject matter, apply to people universally. They are relevant to individuals living within society and also to those outside of a social structure, focusing on individual decision-making under scarcity.
In simple words: Economics is a human science because its rules apply to all people, whether they are living in a group or on their own.

🎯 Exam Tip: Contrast the "human science" view (individual focus) with the "social science" view (group focus) for better understanding.

 

Question 11. Explain the scarcity-centric definition of Robbins.
Answer: Robbins' scarcity-centric definition of economics has four main points:
1. **Unlimited Human Wants:** People always have endless desires and needs.
2. **Limited Resources:** The means available to satisfy these wants are scarce.
3. **Alternative Uses:** These limited resources can be used for different purposes, which makes them even more scarce.
4. **Varying Intensity of Needs:** Not all wants are equally urgent. People prioritize their needs, which helps them make choices among their desires.
In simple words: Robbins defined economics by saying people have unlimited wants but limited resources, and these resources have many uses. Because of this, people have to choose which wants to satisfy first based on how important they are.

🎯 Exam Tip: For definitions with multiple key points, list each point clearly and briefly explain it for maximum clarity.

 

Question 12. Explain any two criticisms of the scarcity-centric definition of Robbins.
Answer: Here are two criticisms of Robbins' scarcity-centric definition:
• **Wider Scope of Economics:** By calling economics a human science, Robbins made its scope very broad, covering all human activities related to choice. This made the study of economic principles and problems much more complex than before.
• **Not Only a Value Theory:** Robbins' definition mainly focused on how resources are distributed to produce goods and how their value and price are determined. However, critics argue that the actual scope of economics is much wider than just allocating resources and setting values.
In simple words: One criticism is that Robbins' definition made economics too broad by including all human choices, making it complicated. Another is that his definition focused too much on how resources are shared and priced, missing other important parts of economics.

🎯 Exam Tip: When criticizing a definition, consider how it might narrow or overly broaden the field of study, or what aspects it might overlook.

 

Question 14. Write four dissimilarities in the definitions of Robbins and Marshall.
Answer: Here are four differences between Marshall's and Robbins' definitions:
• **Difference in Definition Format:** Marshall's definition is descriptive and focuses on parts (sectional), while Robbins' definition is analytical, breaking down problems to understand them.
• **Difference in Subject Matter:** Marshall included the study of wealth-related activities (earning and spending money). Robbins, however, studied human behavior and choice in economics.
• **Form of Economics:** Marshall considered economics a social science. Robbins, on the other hand, viewed it as a human science.
• **Differences in Resource Classification:** Marshall primarily focused on physical resources. Robbins included all types of scarce resources, both physical and non-physical, in his definition.
In simple words: Marshall's definition focused on wealth and was descriptive, calling economics a social science and looking at physical resources. Robbins' definition focused on human choice and scarcity, was analytical, called economics a human science, and included all types of resources.

🎯 Exam Tip: Organize comparative answers using clear categories (like format, subject, form, resources) to make the distinctions easy to follow.

 

Question 15. Who gave the definition of wantlessness? Write down the definition.
Answer: Professor J.K. Mehta, an Indian economist and professor at Allahabad University, gave the definition of wantlessness. His definition states that economics is "a science which studies human behavior as a means to end wantlessness," suggesting that the ultimate goal is to achieve a state free from desires for lasting happiness.
In simple words: Professor J.K. Mehta defined economics as the study of human behavior to help people reach a state where they have no wants.

🎯 Exam Tip: When defining a term, always include the name of the economist who proposed it and the core idea behind their definition.

 

Question 17. Write the definition of economics according to Prof. Samuelson.
Answer: According to Professor Samuelson, "Economics is the study of how men and society choose, with or without the use of money, to employ the scarce productive resources, which have alternative uses, to produce various commodities over time and distribute them for consumption now or in the future among various people and groups in society.” This definition emphasizes resource allocation across time and societal groups.
In simple words: Samuelson said economics studies how people and society decide to use limited resources, with or without money, to make goods and share them among different groups now and in the future.

🎯 Exam Tip: Samuelson's definition is considered modern and comprehensive, so note its inclusion of time, distribution, and various groups.

 

Question 18. Give two reasons for economic problem or the problem of choice.
Answer: The two main reasons for the economic problem or problem of choice are:
• **Limited Economic Resources:** The resources available to humans, such as capital, land, and energy, are scarce. They are not enough to satisfy all unlimited human wants.
• **Unlimited Wants:** Human needs and desires are endless. As soon as one want is fulfilled, another one arises. For example, if someone wants a fan, once they get it, they might then want a cooler, and then an AC, showing that wants are never fully satisfied.
In simple words: The economic problem comes from two things: we have limited resources like money and land, but people's wants are endless, always growing even after some are met.

🎯 Exam Tip: These two reasons are fundamental to understanding the core challenge of economics, so explain them clearly.

 

Question 20. According to Professor Mehta, the purpose of economics is to increase real happiness. Explain this statement.
Answer: Professor Mehta stated that the goal of economics is not merely to increase satisfaction but to enhance real happiness. He believed that since desires are endless, it's impossible to satisfy them completely. Therefore, true happiness can only be achieved by reducing one's desires and attaining a state of mental balance, which he called 'wantlessness'.
In simple words: Professor Mehta believed that economics should aim for real happiness, not just satisfying endless wants. He thought real happiness comes from reducing desires and having a calm mind, as wants can never be fully met.

🎯 Exam Tip: Focus on Mehta's unique perspective—linking economics to philosophy and advocating for wantlessness as the path to happiness.

 

RBSE Class 11 Economics Chapter 1 Long Answer Type Questions

 

Question 1. State the 'Wealth-centric' definitions of economics. State its criticism too.
Answer:
**Wealth-Centred Definition:**
Economists like Prof. Adam Smith, J.B. Say, and Walker proposed wealth-centered definitions. Adam Smith, in his 1776 book "An Enquiry into the Nature of Wealth of Nations," defined economics as "the science of wealth." Walker also stated that "Economics is that body of knowledge which relates to wealth." These early economists believed that the main goal of human economic activity was to earn wealth.
**Criticism:**
This view was heavily criticized because it placed excessive focus on wealth. Many misleading ideas arose, making it seem like economics only encouraged people to be overly attracted to money. However, in the early 19th century, economists clarified that money is just a means to improve human life, not the end itself. Therefore, simply analyzing its origin was deemed inappropriate.
In simple words: Early economists like Adam Smith defined economics as the study of wealth, meaning making money was the main goal. But this was criticized because it made economics seem greedy, when money is only a tool for a better life.

🎯 Exam Tip: When discussing historical definitions, it's important to present both the definition itself and the common criticisms it faced, showing evolution of thought.

 

Question 2. What is the development-centric definition of economics? Explain the main virtues of this definition.
Answer: Professor Robbins introduced a new perspective to economics. He did not emphasize wealth or human welfare but focused on the relationship between unlimited human wants and limited resources. His definition viewed economics from a novel viewpoint: "Economics is a science in which ends, limited resources with multipurpose uses and their relations to human behavior are studied."
**Explanation of Robbins' Definition:**
Robbins' definition brought a new dimension to economics with four key points:
1. **Perpetual and Unlimited Human Wants:** Human desires are never-ending.
2. **Limited Resources for Wants:** Resources (wealth and time) are limited, forcing choices.
3. **Alternative Uses of Resources:** Resources can be used for different things, making choices even more important.
4. **Difference in Priority of Wants:** Some wants are more urgent than others, helping individuals prioritize and make sensible decisions.
In simple words: Robbins defined economics by looking at how people deal with endless wants using limited resources that have many uses. His definition highlights that people always have wants, resources are scarce, these resources can be used for different things, and people prioritize their wants.

🎯 Exam Tip: Clearly breaking down complex definitions into bullet points with simple explanations makes the answer structured and easy to understand for examiners.