Concept of Economics

November 25, 2025

Concept of Economics:
The word “economics” is derived from the ancient Greek word “Oikonomus”. The word“Oikonomus” itself is combined of the two words Oikos means household and Nomus means systemof management. Hence, economics is derived from oikonomus, which means household management.

Different Economic Periods:

School of Economics	Classical Economics	Neoclassical Economics	Modern Economics
Time Period	1776 to 1890	1890 to 1932	1932 to Present
Founder	Adam Smith	Alfred Marshall	Lionel Robbins
Key Books	An enquiry into the nature and cause of wealth of Nations, 1776	Principle of Economics, 1890	An Essay on the Nature and Significance of Economic Science, 1932
Main Concept	Free market, labor theory of value, self-interest, invisible hand, laissez-faire	Marginal utility, equilibrium, rational choice, price determined by demand & supply	Explicit focuses on scarcity, choice, and opportunity cost: arranging ends in order of importance and allocating scarce means among alternative uses.
Representative Economists	Adam Smith, David Ricardo, Thomas Malthus, J.B. Say	Alfred Marshall, William Jevons, Carl Menger, Leon Walras	Lionel Robbins, Keynes, Friedman, Solow, Lucas
Focus of Analysis	Long-run growth, production, distribution, free market functioning	Price determination, utility maximization, marginal analysis, market equilibrium	General problem of economizing: from individual to global level, using micro and macro models of scarcity, choice, and opportunity cost.

MCQs Based on the above notes:

The word “Economics” is derived from which Greek term?

A. Nomikos
B. Oikonomus
C. Oikodomos
D. Nomothetis

2. The term “Oikos” in Greek refers to:

A. Market
B. Household
C. Wealth
D. Production

3. “Nomus” in Greek means:

A. Management
B. Production
C. Economy
D. Resources

4. Who founded classical economics?

A. Lionel Robbins
B. Alfred Marshall
C. Adam Smith
D. Leon Walras

5. The time period of Classical Economics is:

A. 1980 to 1932
B. 1832 to Present
C. 1776 to 1980
D. 1700 to 1850

6. Which book represents the Classical School in the table?

A. Principles of Economics
B. An Essay on the Nature and Significance of Economic Science
C. Wealth of Nations
D. The General Theory

7. Who is identified as the founder of Neoclassical Economics?

A. Adam Smith
B. Lionel Robbins
C. Leon Walras
D. Alfred Marshall

8. The main concept of Neoclassical Economics includes:

A. Free market and invisible hand
B. Explicit focus on scarcity and opportunity cost
C. Marginal utility and equilibrium
D. Macroeconomic stabilization

9. Which book is associated with Neoclassical Economics?

A. Wealth of Nations
B. Principles of Economics (1890)
C. Capital
D. An Essay on Population

10. Who is listed as the founder of Modern Economics?

A. John Maynard Keynes
B. Alfred Marshall
C. Lionel Robbins
D. Milton Friedman

11. The key book of Modern Economics:

A. Wealth of Nations
B. The General Theory
C. Principles of Economics
D. An Essay on the Nature and Significance of Economic Science

12. Which of the following is not a representative economist of Classical Economics?

A. David Ricardo
B. J.B. Say
C. Thomas Malthus
D. William Jevons

13. The focus of analysis in Neoclassical Economics is:

A. Free market functioning
B. Macro stabilization policy
C. Price determination and marginal analysis
D. Economic planning

14. Modern Economics mainly focuses on:

A. Labor theory of value
B. General problem of economizing (scarcity, choice, opportunity cost)
C. Invisible hand
D. Utility maximization

15. Which of the following is not listed under Modern Economics representative economists?

A. Keynes
B. Lucas
C. Solow
D. J.B. Say

Demand Supply and Market Equilibrium: Very Short Answer Question.

Nirajan Raut

November 19, 2025

VERY SHORT ANSWERS (English & Nepali)

Belonging to Grade – XI, Chapter – 3

1. What is meant by demand?

English: Demand means the quantity of a good a consumer is willing and able to buy at a given price.
Nepali: माग भन्नाले उपभोक्ताले कुनै सामान दिइएको मूल्यमा किन्न चाहने र सक्षम भएको परिमाण हो।

2. Name any four determinants of demand.

English: Income, price of the good, taste and preference, price of related goods.
Nepali: आय, सामानको मूल्य, रुचि र मनपराइ, सम्बन्धित वस्तुको मूल्य।

3. State the law of demand.

English: When price rises, demand falls; when price falls, demand rises.
Nepali: मूल्य बढ्दा माग घट्छ, मूल्य घट्दा माग बढ्छ।

4. Define a normal good.

English: A good whose demand increases when income increases.
Nepali: जसको माग आय बढ्दा बढ्छ, त्यस्तो वस्तुलाई सामान्य वस्तु भनिन्छ।

5. What is an inferior good?

English: A good whose demand decreases when income increases.
Nepali: आय बढ्दा जसको माग घट्छ, त्यो निम्नस्तरिय वस्तु हो।

6. Define complementary goods.

English: Goods used together, like tea and sugar.
Nepali: सँगसँगै प्रयोग हुने वस्तु, जस्तै चिया र चिनी।

7. Define substitute goods.

English: Goods that can replace each other, like tea and coffee.
Nepali: एक-अर्कालाई प्रतिस्थापन गर्ने वस्तु, जस्तै चिया र कफी।

8. Define a demand schedule.

English: A table showing quantity demanded at different prices.
Nepali: विभिन्न मूल्यमा मागिएको परिमाण देखाउने तालिका।

9. What is extension in demand?

English: Increase in quantity demanded due to a fall in price.
Nepali: मूल्य घट्दा माग बढ्नु मागको विस्तार हो।

10. Define contraction in demand.

English: Decrease in quantity demanded due to a rise in price.
Nepali: मूल्य बढ्दा माग घट्नु मागको संकुचन हो।

11. What is increase in demand?

English: Demand rises due to factors other than price.
Nepali: मूल्य बाहेक अन्य कारणले माग बढ्नु।

12. What is decrease in demand?

English: Demand falls due to factors other than price.
Nepali: मूल्य बाहेक कारणले माग घट्नु।

13. Causes of increase in demand.

English: Higher income, fall in price of complementary goods, rise in price of substitutes, change in taste.
Nepali: आय वृद्धि, पूरक वस्तुको मूल्य घट्नु, प्रतिस्थापनको मूल्य बढ्नु, रुचि बढ्नु।

14. Causes of decrease in demand.

English: Lower income, rise in price of complementary goods, fall in price of substitutes, loss of interest.
Nepali: आय घट्नु, पूरक वस्तुको मूल्य बढ्नु, प्रतिस्थापनको मूल्य घट्नु, रुचि कम हुनु।

15. What is shift in demand curve?

English: When demand changes due to non-price factors, the whole curve shifts.
Nepali: मूल्य बाहेक कारणले माग बदलिँदा माग वक्र सारिनु।

16. Define supply.

English: Supply is the quantity producers are willing and able to sell at a given price.
Nepali: दिइएको मूल्यमा बेच्न उत्पादक तयार र सक्षम भएको परिमाण आपूर्ति हो।

17. What is supply schedule?

English: A table showing quantity supplied at different prices.
Nepali: विभिन्न मूल्यमा आपूर्ति परिमाण देखाउने तालिका।

18. What is extension in supply?

English: Increase in quantity supplied due to higher price.
Nepali: मूल्य बढ्दा आपूर्ति बढ्नु।

19. What is contraction in supply?

English: Decrease in quantity supplied due to lower price.
Nepali: मूल्य घट्दा आपूर्ति घट्नु।

20. Define increase in supply.

English: Supply rises due to non-price factors.
Nepali: मूल्य बाहेक कारणले आपूर्ति बढ्नु।

21. Define decrease in supply.

English: Supply falls due to non-price factors.
Nepali: मूल्य बाहेक कारणले आपूर्ति घट्नु।

22. State the law of supply.

English: When price rises, supply rises; when price falls, supply falls.
Nepali: मूल्य बढ्दा आपूर्ति बढ्छ, मूल्य घट्दा आपूर्ति घट्छ।

23. Causes of increase in supply.

English: Better technology, lower production cost, more producers.
Nepali: प्रविधि सुधार, लागत कमी, उत्पादक संख्या वृद्धि।

24. Causes of decrease in supply.

English: Higher production cost, poor technology, fewer producers.
Nepali: लागत वृद्धि, कमजोर प्रविधि, उत्पादक कमी।

25. Define shift in supply curve.

English: When supply changes due to non-price factors, the whole curve shifts.
Nepali: मूल्य बाहेक कारणले आपूर्ति बदलिँदा आपूर्ति वक्र सारिनु।

26. What is equilibrium price?

English: The price where demand equals supply.
Nepali: जहाँ माग र आपूर्ति बराबर हुन्छ, त्यही सन्तुलन मूल्य हो।

27. Define surplus and shortage.

English:
Surplus: It is the condition where supply is greater than demand. (Supply > Demand)
Shortage: It is the condition where demand is greater than supply. (Demand > Supply)
Nepali:
अधिशेष: आपूर्ति मागभन्दा बढी।
अभाव: माग आपूर्तिभन्दा बढी।

28. Diagram: Shift in Demand Curve

29. Market Equilibrium Diagram

SEE – Economics: Practice Set – 1 Solutions

Nirajan Raut

November 19, 2025

SEE - Economics: Practice Set - 1 Solutions

SEE – Economics: Practice Set – 1 [Solutions]

Group – A

Write the nature of the average revenue as output increases under perfect competition.

English:
Under perfect competition, Average Revenue (AR) remains constant even if output increases because the firm sells all units at the same fixed price.

Nepali:
पूर्ण प्रतिस्पर्धामा उत्पादन बढे पनि औसत राजस्व (AR) स्थिर रहन्छ, किनकि सबै वस्तुहरू उही मूल्यमा बेचिन्छन्।

Calculating the marginal cost if output changes from 7 to 9 units causes the change to total cost from Rs. 25000 by Rs. 250.

To calculate Marginal Cost, we use:
MC = Change in Total Cost ÷ Change in Output

Write the two conditions for output determination.

English:

Output is determined where Marginal Cost (MC) equals Marginal Revenue (MR).
The MC curve must rise after the MR = MC point.

Nepali:

उत्पादन निर्धारण MR = MC भएको बिन्दुमा हुन्छ।
MR = MC भएको बिन्दुपछि MC वक्र माथि बढ्दै जानु पर्छ।

What is the Marginal Cost?

English:
Marginal Cost is the extra cost of producing one more unit of output.

Nepali:
सीमान्त लागत भनेको एक थान थप उत्पादन गर्दा लाग्ने अतिरिक्त लागत हो।

What is type of paper money currently in circulation in Nepal?

English:
Nepal uses fiat money, which has value because the government declares it as legal tender.

Nepali:
नेपालमा हाल प्रयोग हुने कागजी पैसा फियाट पैसा हो, जसलाई सरकारले वैध मुद्रा घोषणा गरेको हुन्छ।

What is indirect tax?

English:
Indirect tax is the tax that is paid by one person but collected from another, usually paid while buying goods.

Nepali:
अप्रत्यक्ष कर भनेको एक व्यक्तिले तिर्ने तर अर्कोले असुल गर्ने कर हो, जुन सामान्यतया सामान किन्दा तिर्नुपर्छ।

Give two suggestions to increase human development index of Nepal.

English:

Improve education and provide quality schools.
Increase access to health services.

Nepali:

शिक्षा सुधार गरी गुणस्तरीय विद्यालयहरू उपलब्ध गराउने।
स्वास्थ्य सेवाको पहुँच बढाउने।

Mention three major goods imported by Nepal.

English:
Nepal mainly imports:

Petroleum products
Machinery
Vehicles

Nepali:
नेपालले मुख्य रूपमा यी वस्तुहरू आयात गर्छ:

पेट्रोलियम पदार्थ
मेसिनरी
सवारी साधन

When was Nepal Rastra Bank established?

English:
Nepal Rastra Bank was established in 1956 A.D. (2013/01/14 B.S.)

Nepali:
नेपाल राष्ट्र बैंक २०१३ बैसाख १४ (१९५६ ई.सं.) मा स्थापना भएको हो।

Define statistics in singular sense.

English:
In singular sense, statistics means the science of collecting, organizing, and analyzing data.

Nepali:
Singular sense, तथ्याङ्क भनेको डाटा संकलन, व्यवस्थित गर्ने र विश्लेषण गर्ने विज्ञान हो।

Define scarcity.

English:
Scarcity means the condition where demand exceeds the supply.

Nepali:
अभाव भनेको माग आपूर्तिभन्दा बढी हुने अवस्थालाई भनिन्छ।

SEE Economics Practice Set -1

Nirajan Raut

November 18, 2025

Class: X [Economics]
(SEE practice exam questions – I)

Time: 3 Hours FM: 75 / PM: 27

Group A

Give a very short answer to the following questions.

Write the nature of the average revenue as output increases under perfect competition. (पूर्ण प्रतिस्पर्धामा उत्पादन बढ्दै जाँदा औसत राजस्व (Average Revenue) को प्रकृति लेख्नुहोस्।)
Calculating the marginal cost if output changes from 7 to 9 units causes the change to total cost from Rs. 25000 by Rs. 250. (यदि उत्पादन 7 इकाइबाट 9 इकाइमा परिवर्तन हुँदा कुल लागत (Total Cost) रु. २५,००० बाट रु. २५० ले परिवर्तन हुन्छ भने सिमान्त लागत (Marginal Cost) गणना गर्नुहोस्।)
Write the two conditions for output determination. (उत्पादन निर्धारणका दुई सर्तहरू लेख्नुहोस्।)
What is the marginal Cost? (सिमान्त लागत (Marginal Cost) भनेको के हो?)
What is type of paper money currently in circulation in Nepal? (हाल नेपालमा चलनचल्तीमा रहेका कागजी पैसाका प्रकारहरू के हुन्?)
What is indirect tax? (अप्रत्यक्ष कर (Indirect Tax) के हो?)
Give two suggestions to increase human development index of Nepal. (नेपालको मानव विकास सूचकांक (Human Development Index) वृद्धि गर्न दुई सुझाव दिनुहोस्।)
Mention three measure goods imported by Nepal. (नेपालले आयात गर्ने तीन प्रमुख वस्तुहरू उल्लेख गर्नुहोस्।)
When was Nepal Rastriya Bank established? (Nepal Rastriya Bank (NRB) कहिले स्थापना भएको थियो?)
Define statistics as singular sense? (Singular अर्थमा तथ्याङ्कको परिभाषा दिनुहोस्।?)
Define scarcity. (अभाव (Scarcity) परिभाषित गर्नुहोस्।)

Group B

Give short answers to the following questions. (8*5)

Complete the following table and write the relation pf AR and MR.

Quantity	TR	MR	AR
1	–	–	6
2	10	–	–
3	–	2	–
4	–	–	3
5	–	-2	–

Clarify the process of price determination under perfect competition with table.
Consider the following table and answer the following questions.

Market price of the commodity (Rs/Kg)	Market Demand of the commodity (in Kg)	Market supply of the commodity (in Kg)
1	10	2
2	8	4
3	6	6
4	4	8
5	2	10

1. Draw the market demand and supply curves for the commodity on a single diagram, based on the given table
2. Identify the relationship between market price and quantity demanded, as well as market price and quantity supplied, based on the diagram.
3. Based on the diagram, analyze the interactions between the market demand and market supply of the commodity in a perfectly competitive market, and determine the equilibrium price and quantity.

15. Mention the major difference between economics growth and economic development.

16. Explain the role of uncertainty in the profit generation based on the uncertainty-bearing theory of profit.

17. Explain the five characteristics/features of Nepal’s economy.

18. Calculate mean and median from the following data:

Class Interval	0-10	10-20	20-30	30-40	40-50
Frequency	2	4	6	3	2

Define the term statistic in plural and singular form.

Or,

Show the given data in pie-diagram.

Expenditure Heads	Wages	Cement	Timber	Iron	Sand	Miscellaneous
Expenditure (in Rs.)	1200	1600	600	800	400	200

Group C

Write long answers to the following questions.

Explain how commercial bank can contribute to the economic development of Nepal.
Construct the frequency distribution table from the mark obtained by class 10 students in economics subject having full marks of 75 with the first-class interval as 0-10 and calculate the simple arithmetic mean and interpret the result.

Obtained marks: 5, 10, 15, 25, 55, 5,15,10,25,50,10,5, 15,55,5,10,35,25, 45,45,10,25,5, 35,30,5,55,5,25,55.

Construct price index using Laspeyres’s and Paasche’s method from the following data and mention/draw the conclusions based on the results.

Types of Goods	Base Year 2023		Current Year 2024
Types of Goods	Price (Rs.)	Quantity (Kg)	Price (Rs.)	Quantity (Kg)
Lemon	30	2	40	3
Guava	40	4	50	5
Orange	50	6	60	7
Strawberry	60	8	70	9

*** Wishing you the very best on your exams! ***

Download: SEE – Economics – Model set 1

Concept of Economics

Concept of Economics:The word “economics” is derived from the ancient Greek word “Oikonomus”. The word“Oikonomus” itself is combined of the two words Oikos means household and Nomus means systemof management. Hence, economics is derived from oikonomus, which means household management.

Different Economic Periods:

Demand Supply and Market Equilibrium: Very Short Answer Question.

VERY SHORT ANSWERS (English & Nepali)

1. What is meant by demand?

2. Name any four determinants of demand.

3. State the law of demand.

4. Define a normal good.

5. What is an inferior good?

6. Define complementary goods.

7. Define substitute goods.

8. Define a demand schedule.

9. What is extension in demand?

10. Define contraction in demand.

11. What is increase in demand?

12. What is decrease in demand?

13. Causes of increase in demand.

14. Causes of decrease in demand.

15. What is shift in demand curve?

16. Define supply.

17. What is supply schedule?

18. What is extension in supply?

19. What is contraction in supply?

20. Define increase in supply.

21. Define decrease in supply.

22. State the law of supply.

23. Causes of increase in supply.

24. Causes of decrease in supply.

25. Define shift in supply curve.

26. What is equilibrium price?

27. Define surplus and shortage.

28. Diagram: Shift in Demand Curve

29. Market Equilibrium Diagram

SEE – Economics: Practice Set – 1 Solutions

SEE - Economics: Practice Set - 1 Solutions

SEE – Economics: Practice Set – 1 [Solutions]

SEE Economics Practice Set -1

Concept of Economics:
The word “economics” is derived from the ancient Greek word “Oikonomus”. The word“Oikonomus” itself is combined of the two words Oikos means household and Nomus means systemof management. Hence, economics is derived from oikonomus, which means household management.