Free CBSE Class 11 Microeconomics Chapter 2 Central Problems of an Economy Notes PDF
The Central Problems of an Economy arise because resources are scarce while wants are unlimited. This chapter explains what, how and for whom to produce and uses the production possibility curve to show choice, efficiency and opportunity cost.
Board: CBSE · Class: 11 · Updated: 2026-08-31 · Access: Free, no registration
Important topics covered
- What, how and for whom to produce
- Production possibility curve and schedule
- Opportunity cost and marginal opportunity cost
- Efficient, inefficient and unattainable combinations
- Shifts and rotations of the PPC
Exam-focused revision checklist
- Draw and label the PPC accurately.
- Explain movement versus shift using the correct cause.
- Practise marginal opportunity cost calculations from a schedule.
Important questions with answer guidance
What should students explain about What, how and for whom to produce?
What, how and for whom to produce is an important part of Central Problems of an Economy. Begin with its meaning, explain the main elements or relationship clearly, and support the answer with an example, schedule or diagram wherever the chapter requires it. Draw and label the PPC accurately.
What should students explain about Production possibility curve and schedule?
Production possibility curve and schedule is an important part of Central Problems of an Economy. Begin with its meaning, explain the main elements or relationship clearly, and support the answer with an example, schedule or diagram wherever the chapter requires it. Explain movement versus shift using the correct cause.
What should students explain about Opportunity cost and marginal opportunity cost?
Opportunity cost and marginal opportunity cost is an important part of Central Problems of an Economy. Begin with its meaning, explain the main elements or relationship clearly, and support the answer with an example, schedule or diagram wherever the chapter requires it. Practise marginal opportunity cost calculations from a schedule.
What should students explain about Efficient, inefficient and unattainable combinations?
Efficient, inefficient and unattainable combinations is an important part of Central Problems of an Economy. Begin with its meaning, explain the main elements or relationship clearly, and support the answer with an example, schedule or diagram wherever the chapter requires it. Draw and label the PPC accurately.
Chapter MCQs with answers
MCQ 1: Which of the following is directly covered in Chapter 2: Central Problems of an Economy?
- Meaning and scope of economics
- Meaning and measurement of utility
- What, how and for whom to produce
- Preferences and indifference sets
Answer: C. What, how and for whom to produce is one of the core topics covered in this chapter.
MCQ 2: Which of the following is directly covered in Chapter 2: Central Problems of an Economy?
- Total utility and marginal utility relationship
- Indifference curve and indifference map
- Individual and market demand schedules
- Production possibility curve and schedule
Answer: D. Production possibility curve and schedule is one of the core topics covered in this chapter.
MCQ 3: Which of the following is directly covered in Chapter 2: Central Problems of an Economy?
- Opportunity cost and marginal opportunity cost
- Properties of indifference curves
- Law of demand and its assumptions
- Total expenditure method
Answer: A. Opportunity cost and marginal opportunity cost is one of the core topics covered in this chapter.
MCQ 4: Which of the following is directly covered in Chapter 2: Central Problems of an Economy?
- Movement along and shift of the demand curve
- Efficient, inefficient and unattainable combinations
- Geometric or point method
- Relationship among TP, AP and MP
Answer: B. Efficient, inefficient and unattainable combinations is one of the core topics covered in this chapter.
Download Central Problems of an Economy notes PDF for CBSE Class 11 Microeconomics
Use the complete chapter PDF for school tests, board-exam revision and concept review. View or download the free Central Problems of an Economy notes PDF.
Why you can trust this study resource
This chapter-specific resource is organised by Smit Sir for Class 11 Commerce students. It is free to view and download and should be used alongside NCERT questions and the latest official CBSE sample papers.
Frequently asked questions
Are these Central Problems of an Economy notes free?
Yes. The complete CBSE Class 11 chapter PDF can be viewed online or downloaded without payment or registration.
What is covered in Chapter 2?
The notes cover What, how and for whom to produce, Production possibility curve and schedule, Opportunity cost and marginal opportunity cost and the other important concepts listed on this page.
How should I use these notes for CBSE exam revision?
Start with the overview, revise each key topic, read the complete PDF and finish with the exam checklist, important questions and MCQs. Also practise NCERT questions and the latest official CBSE sample papers.
Continue learning
- Previous: Chapter 1 Economics and Economy notes
- Next: Chapter 3 Consumer's Equilibrium — Utility Analysis notes
- All Class 11 Microeconomics notes
- All free CBSE Commerce notes
Other free CBSE Commerce subjects
Practise Central Problems of an Economy
After reading the notes, use these chapter-specific practice pages to retrieve and apply the concepts.
Continue your Class 11 Economics learning path
Use these related pages to move from explanation to practice and tools without leaving the same subject area.