1. What is Economics?
Economics is the study of how people, firms and governments use limited resources to satisfy their unlimited wants.
Simple idea:
Simple idea:
- Our wants (needs + desires) are many.
- Money, time, land, labour, machines etc. are limited.
- So we must choose – what to produce, how to produce, and for whom.
हिंदी: Economics = सीमित साधनों से असीमित इच्छाएँ कैसे पूरी की जाएँ –
यानी किस चीज़ का कितना उत्पादन हो, कैसे हो और किसके लिए हो – यह सब समझाने वाला विषय।
2. Definitions of Economics (Simple Exam View)
(a) Wealth Definition – Adam Smith
Economics is the study of wealth – how a nation produces and accumulates wealth. (Old definition, now considered narrow.)
(b) Welfare Definition – Alfred Marshall
Economics is the study of mankind in the ordinary business of life – how income is earned and used for welfare.
(c) Scarcity Definition – Lionel Robbins
Economics is the science which studies human behaviour as a relationship between ends (wants) and scarce means which have alternative uses.
For NDA, remember: Economics mainly deals with scarcity, choice and allocation of resources.
Economics is the study of wealth – how a nation produces and accumulates wealth. (Old definition, now considered narrow.)
(b) Welfare Definition – Alfred Marshall
Economics is the study of mankind in the ordinary business of life – how income is earned and used for welfare.
(c) Scarcity Definition – Lionel Robbins
Economics is the science which studies human behaviour as a relationship between ends (wants) and scarce means which have alternative uses.
For NDA, remember: Economics mainly deals with scarcity, choice and allocation of resources.
हिंदी:
आज के समय में सबसे ज़्यादा use होने वाला विचार = Lionel Robbins:
कम संसाधन, ज़्यादा इच्छाएँ, और चुनना पड़ता है – यही Economics की जड़ है।
3. Basic Concepts: Wants, Resources & Scarcity
Wants:
- Human wants are unlimited – जैसे खाना, कपड़ा, मकान, शिक्षा, मोबाइल, गाड़ी आदि।
- One want gets satisfied, another appears.
- Things used to satisfy wants – land, labour, capital (machines, money), enterprise.
- These are limited (scarce).
- When wants > resources → we cannot satisfy all wants.
- This scarcity forces us to make choices.
हिंदी: जिंदगी में पैसे, समय, सामान – सब limited हैं,
इच्छाएँ unlimited हैं → इसलिए हमें priority decide करनी पड़ती है –
यही scarcity और choice है।
4. Opportunity Cost (Very Important Concept)
Opportunity Cost = value of the next best alternative that we give up when we make a choice.
Example:
Example:
- You have 2 hours in the evening: either study for NDA or watch a movie.
- If you choose to study, your opportunity cost = enjoyment of movie you gave up.
हिंदी: Opportunity Cost = जो दूसरा सबसे अच्छा option हम छोड़ देते हैं, उसकी कीमत.
हर चुनाव के साथ एक त्याग जुड़ा होता है – यही economics का core idea है।
5. Micro Economics vs Macro Economics
Micro Economics (Small units):
- Studies individual units – a consumer, a firm, a particular market.
- Examples: price of wheat, demand of mobile phones, supply of sugar.
- Studies the economy as a whole.
- Examples: national income, unemployment, inflation, total savings, GDP growth.
हिंदी Trick:
Micro = “My – Crow” – छोटा, individual
Macro = “Mega” – बड़ा, पूरी economy
6. Central Problems of an Economy
Because resources are scarce, every economy (India, USA, Japan etc.) faces three basic questions:
- What to produce?
– Which goods and services? Food or weapons? Luxury or basic goods? - How to produce?
– Labour-intensive (more workers) or capital-intensive (more machines)? - For whom to produce?
– Who will get how much share of the total output? Rich vs poor?
हिंदी: हर देश को ये तीन सवाल हल करने होते हैं –
क्या बनाएँ, कैसे बनाएँ, किसके लिए बनाएँ –
यही “Central Problems of an Economy” हैं।
7. Importance of Economics for NDA Aspirants
- Questions in NDA GAT paper often come from basic economics (definitions, concepts, Indian context).
- As a future officer, understanding economy helps in:
- Budget, planning and resource management.
- Understanding government policies (subsidy, tax, welfare).
- Interpreting news on GDP, inflation, unemployment, etc.
हिंदी: NDA के बाद भी – Army / Defence officer को budget, resource, logistics समझने होते हैं,
इसलिए Economics की basic समझ बहुत मदद करती है।
📘 Practice Questions (NDA Style)
1. Economics is primarily concerned with:
a) Production of goods only
b) Unlimited resources and limited wants
c) Limited resources and unlimited wants
d) Political behaviour of people
2. Which of the following is a basic economic problem?
a) What to produce?
b) How to produce?
c) For whom to produce?
d) All of the above
3. Opportunity cost means:
a) The total cost of production
b) The cost of the next best alternative forgone
c) The cost of all alternatives
d) The money cost only
4. Micro economics deals with:
a) National income
b) General price level
c) Individual consumer and firm behaviour
d) Total savings of the economy
5. Which pair is correctly matched?
a) Micro – National income
b) Macro – Individual firm
c) Micro – Individual market
d) Macro – Individual household
a) Production of goods only
b) Unlimited resources and limited wants
c) Limited resources and unlimited wants
d) Political behaviour of people
2. Which of the following is a basic economic problem?
a) What to produce?
b) How to produce?
c) For whom to produce?
d) All of the above
3. Opportunity cost means:
a) The total cost of production
b) The cost of the next best alternative forgone
c) The cost of all alternatives
d) The money cost only
4. Micro economics deals with:
a) National income
b) General price level
c) Individual consumer and firm behaviour
d) Total savings of the economy
5. Which pair is correctly matched?
a) Micro – National income
b) Macro – Individual firm
c) Micro – Individual market
d) Macro – Individual household
Answers:
1 – c) Limited resources and unlimited wants
2 – d) All of the above
3 – b) The cost of the next best alternative forgone
4 – c) Individual consumer and firm behaviour
5 – c) Micro – Individual market
Ask Doubt
1 – c) Limited resources and unlimited wants
2 – d) All of the above
3 – b) The cost of the next best alternative forgone
4 – c) Individual consumer and firm behaviour
5 – c) Micro – Individual market
Quick Recap | सार
Now you should be able to:
- Recall the most important ideas of this topic.
- Solve typical NDA-style questions from this chapter.
- Spot and avoid common traps used in competitive exams.
Self-check: 3–4 random questions उठा कर देखिए – अगर आसानी से हो रहे हैं, तो chapter strong है।
Common Exam Mistakes | आम गलतियाँ
- Concept ठीक से clear न करना और सीधे रटने की कोशिश करना।
- Question पूरी तरह पढ़े बिना answer mark कर देना।
- Figures, dates, या formulas को last step में verify न करना।
NDA में smart strategy यह है कि आसान वाले सवाल पहले, doubtful बाद में – और silly mistakes से बचना सबसे ज़रूरी है।