Ayussh Sanghi is teaching live on Unacademy Plus
NCERT Class XII
Chapter 1 Introduction : Economy
BY AYUSSH SANGHI
HUMAN NEEDS People in the society need many goods and services in their everyday life including: 1. food, 2. clothing 3. shelter, 4 transport facilities like roads and railways, 5. postal services and 6. various other services like that of teachers and doctors. The list of goods and services that any individual needs is so large that no individual in society, to begin with, has all the things she needs
EXAMPLE If the family wants to have a bigger house, it may have to give up the idea of having a few more acres of arable land. If it wants more and better education for the children, it may have to give up some of the luxuries of life. The same is the case with all other individuals in society.
LOGIC Human wants are unlimited but resources to satisfy the same are limited Hence it has to be seen as to whether we are doing justice with the allocation of resources to human beings in a proper manner
Any allocation of resources of the society would result in the production of a particular combination of different goods and services. The goods and services thus produced will have to be distributed among the individuals of the society.
PROBLEMS FACED BY THE INDIAN ECONOMY .The allocation of: 1. the limited resources and 2. the distribution of the final mix of goods and services are two of the basic economic problems faced by the society Goods and services from firms Firms Houscholds Resources frorm households