The first chapter of NCERT Class 11 Economics is titled Introduction. It sets the tone for the entire subject by explaining what economics actually means, how it works in real life, and why we need to study it. The chapter introduces basic concepts like scarcity, choice, resources, and the importance of economic activities in day-to-day life. It also explains how economic problems arise and how societies solve them through decision-making at various levels.
I’ve written about this chapter because most students often find economics confusing in the beginning. They wonder why they are reading about scarcity or choice when they were expecting numbers and calculations. But without understanding the basics from this first chapter, nothing else will make sense in the later units. This chapter builds your foundation. It tells you why economics is not just about money, but about human choices and behaviour. It’s important not just for Class 11 students but also for anyone trying to understand how countries function, how budgets are planned, or even how households make spending decisions. A solid understanding of this chapter will help in competitive exams as well, like CUET, UPSC, or state-level economic services papers.
What This Chapter Covers
The chapter begins by asking a simple question: why should we study economics? The answer is explained using real-life examples. Here are some key points from the chapter:
1. Definition and Scope of Economics
- Economics is the study of how people use limited resources to satisfy unlimited wants.
- The focus is on decision-making – both by individuals and by governments.
2. The Problem of Scarcity
- Resources like land, labour, and capital are limited.
- Because of this, people have to make choices – for example, whether to buy a mobile phone or save for future expenses.
3. What, How, and For Whom to Produce
- These three basic questions arise in all economies:
- What goods and services should be produced?
- How should they be produced – with machines or manual labour?
- Who should get how much of the available goods?
4. Types of Economic Systems
- The chapter also introduces the idea of different economic systems:
- Capitalist economy (like the US)
- Socialist economy (like old USSR)
- Mixed economy (like India)
Each of these systems solves the three basic problems in its own way.
Why This Chapter Matters for Future Learning
This chapter is not about formulas or graphs, but about understanding the world we live in. Later chapters will talk about national income, poverty, unemployment, and other real-world issues. Without knowing how economies make choices, those topics can feel disconnected. This is why every economics teacher stresses on reading this chapter slowly and carefully.
One example I found interesting was how a farmer decides which crop to grow. He has limited land and labour. If he grows wheat, he might earn less, but if he grows vegetables, he might earn more but with more risk. This is exactly what economics teaches – how to make a decision when resources are limited.
Also, if you’re preparing for class tests or final exams, many short answer questions come directly from this chapter. So, don’t skip it thinking it’s just theory. It’s foundational.
Download PDF: NCERT Class 11 Economics Chapter 1 – Introduction
You can download the official PDF of this chapter directly from the NCERT website. It is completely free and approved by CBSE.
Download NCERT Class 11 Economics Chapter 1 – Introduction PDF
