The word 'Economics' comes from the Greek word 'Oikonomia', meaning:

Management of the household. Oikonomia means management of the household.

Who called Economics the 'Queen of Social Sciences'?

Paul Samuelson. Paul Samuelson gave Economics this title.

Adam Smith's book 'An Inquiry into the Nature and Causes of Wealth of Nations' was published in:

1776. It was published in 1776.

Marshall's definition is described as:

Welfare-oriented. Marshall focused on material welfare.

Arthashastra was written by:

Kautilya. Kautilya (Chanakya) wrote the Arthashastra.

Maharashtra State Board · HSC Commerce · Class 11 (Std XI)

Class 11 Economics Chapter 1: Basic Concepts in Economics

Short notes, key concepts, quick revision and practice MCQs with answers

Economics is a social science that studies how people satisfy unlimited wants with limited means. The chapter traces how economists have defined the subject and separates microeconomics from macroeconomics.

Key concepts: Basic Concepts in Economics

Natural vs social science: Natural sciences (Physics, Chemistry) have universal, lab-testable laws. Social sciences study human behaviour, so their laws are only general tendencies.
Origin of the word: From the Greek 'Oikonomia', meaning management of the household. Paul Samuelson called Economics the 'Queen of Social Sciences'.
Kautilya's Arthashastra: 'Artha' = wealth, 'Shastra' = science. A treatise on political economy stressing the role of the state and wealth creation for welfare.
Adam Smith: wealth definition: Economics as a 'science of wealth' (Wealth of Nations, 1776). Key ideas: laissez faire, capital accumulation, division of labour.
Marshall: welfare definition: Economics studies mankind in the ordinary business of life and material well-being (Principles of Economics, 1890).
Micro and macro: Microeconomics studies individual units (a consumer, a firm); macroeconomics studies the economy as a whole (national income, employment, inflation).

Quick revision: important points

Adam Smith is called the Father of Economics.
Kautilya is also known as Chanakya or Vishnugupta (Mauryan period).
Robbins defined Economics through scarcity and choice; Samuelson through growth.
Natural sciences are called exact sciences; social sciences are behavioural sciences.

Practice MCQs with answers

The word 'Economics' comes from the Greek word 'Oikonomia', meaning:
1. Wealth
2. Management of the household
3. Money
4. Trade
Show answer
Answer: B. Management of the household
Oikonomia means management of the household.
Who called Economics the 'Queen of Social Sciences'?
1. Adam Smith
2. Alfred Marshall
3. Paul Samuelson
4. Kautilya
Show answer
Answer: C. Paul Samuelson
Paul Samuelson gave Economics this title.
Adam Smith's book 'An Inquiry into the Nature and Causes of Wealth of Nations' was published in:
1. 1776
2. 1890
3. 1932
4. 1947
Show answer
Answer: A. 1776
It was published in 1776.
Marshall's definition is described as:
1. Wealth-oriented
2. Welfare-oriented
3. Scarcity-oriented
4. Growth-oriented
Show answer
Answer: B. Welfare-oriented
Marshall focused on material welfare.
Arthashastra was written by:
1. Kautilya
2. Manu
3. Ashoka
4. Birbal
Show answer
Answer: A. Kautilya
Kautilya (Chanakya) wrote the Arthashastra.

All Class 11 Economics chapters

Chapter 1: Basic Concepts in Economics
Chapter 2: Money
Chapter 3: Partition Values
Chapter 4: The Economy of Maharashtra
Chapter 5: Rural Development in India
Chapter 6: Population in India
Chapter 7: Unemployment in India
Chapter 8: Poverty in India
Chapter 9: Economic Policy of India since 1991
Chapter 10: Economic Planning in India

Class 11 Economics notes: all chapters