NCERT Class 11 Economics Statistics for Economics: Chapter 1 — Introduction
This chapter introduces the subject of Economics, defining it as the study of man in the ordinary business of life, as described by Alfred Marshall. It explains key economic activities like consumption, production, and distribution, and the roles of consumers, sellers, producers, employees, and employers. The chapter highlights that unlimited wants coupled with limited resources (scarcity) form the root of all economic problems. It uses relatable examples like pocket money and queues to illustrate scarcity and the necessity of choice. The text emphasizes that unlike Aladdin's magic lamp, real-life resources are limited and have alternative uses, making economics crucial for understanding how individuals and societies manage these constraints. This foundational understanding is vital for students studying Economics and preparing for CBSE examinations.
Quick info
| Board | CBSE / NCERT |
|---|---|
| Class | Class 11 |
| Subject | Economics |
| Book | Statistics for Economics |
| Chapter | Chapter 1 — Introduction |
| Language | English |
| PDF type | NCERT Textbook |
| Session | CBSE 2026 |
| Reading time | 4 minutes |
| Word count | 651 |
Learning outcomes
- Understand the core subject matter of economics.
- Recognize the link between economics and economic activities (consumption, production, distribution).
- Appreciate the role of statistics in understanding economic phenomena.
- Identify the concepts of consumer, producer, seller, employee, and employer.
- Grasp the fundamental economic problem of scarcity and its implications.
Vocabulary
| Word | Meaning |
|---|---|
| Consumer | A person who buys goods to satisfy personal or family needs, or to give as a gift. |
| Seller | A person who sells goods to make a profit. |
| Producer | A person or entity that produces goods or provides services. |
| Employee | A person working for someone else and receiving wages or salary. |
| Employer | A person who employs others and pays them wages. |
| Economic activity | An activity undertaken for monetary gain. |
| Scarcity | The fundamental economic problem arising from limited resources and unlimited wants. |
The complete chapter text is read in the official NCERT PDF viewer below (streamed from ncert.nic.in). This page provides NCERT Help study material — summary, vocabulary, practice questions, and FAQs — not a full reproduction of the textbook.
Read chapter online
This PDF is loaded from the official NCERT website (ncert.nic.in). Use the page buttons below to read — download is disabled on NCERT Help.
Read page by page below. PDF is streamed from the official NCERT website — no download button on this page.
Practice questions
- Who is called a consumer? Answer: A consumer is a person who buys goods to satisfy their own needs, family needs, or to give as a gift.
- What is the main reason for economic problems? Answer: Scarcity, which arises because wants are unlimited but the resources to satisfy them are limited, is the root of all economic problems.
- Give an example of an economic activity. Answer: Working as a shopkeeper, farmer, doctor, or transporter are examples of economic activities.
- What does Alfred Marshall mean by 'the study of man in the ordinary business of life'? Answer: It refers to the study of economic activities undertaken by people for monetary gain in their daily lives.
Frequently asked questions
What is the primary definition of economics presented in the chapter?
Economics is defined as the study of man in the ordinary business of life, focusing on economic activities undertaken for monetary gain.
What are the main economic activities discussed?
The chapter discusses consumption, production, and distribution as key economic activities.
Why is scarcity a fundamental concept in economics?
Scarcity is fundamental because human wants are unlimited, but the resources available to satisfy them are limited, forcing choices.
Who is considered a producer?
A producer is someone who creates goods or provides services, such as a farmer or a doctor.
How does pocket money relate to economics?
Limited pocket money forces individuals to make choices about what to buy, illustrating the economic principle of scarcity and choice.
What is the difference between an employee and an employer?
An employee works for someone else and gets paid, while an employer hires others and pays them wages.
Related resources
Important topics
Topics covered
NCERT Class 11 Economics — Statistics for Economics — Chapter 1 — Introduction. Verified by NCERT Help Editorial Team. Reviewed on 29 Jul 2026. Last updated 10 Aug 2026.