CBSE Class 9 Social Science Building Blocks in Economics: The Problem of Choice (Class 9 NCERT New) Quiz 1

1. What is the definition of 'scarcity' in economics?

A Scarcity refers to the abundance of resources available for consumption. B Scarcity is the situation where all human wants are easily satisfied. C Scarcity is the condition where resources are limited and insufficient to satisfy all human wants. D Scarcity describes a state of economic growth and resource surplus.

2. Which of the following best describes 'opportunity cost'?

A The benefits gained from a decision made. B The value of the next best alternative that is forgone. C The cost of producing an additional unit. D The total expenses incurred in a project.

3. What are the three basic economic questions every society must answer?

A What to produce, How to produce, For whom to produce B When to produce, Where to produce, Why to produce C What to consume, How to consume, For whom to consume D How much to produce, Who to produce for, What to sell

4. What happens to the quantity demanded of a product when its price increases, assuming all other factors remain constant?

A The quantity demanded increases. B The quantity demanded decreases. C The quantity demanded remains unchanged. D The quantity demanded fluctuates unpredictably.

5. What is the 'law of supply'?

A The law of supply indicates that higher prices lead to a higher quantity supplied. B The law of supply suggests that supply remains constant regardless of price changes. C The law of supply indicates that higher prices lead to lower quantity demanded. D The law of supply states that lower prices decrease the quantity supplied.

6. At what point does the quantity supplied equal the quantity demanded in a market?

A Market demand zone B Market supply point C Market price level D Market equilibrium point

7. Which type of economic system is characterized by government ownership and control of all major industries?

A Socialism B Feudalism C Communism D Capitalism

8. In a free market economy, who makes the major economic decisions?

A Individuals and businesses B International organizations C Government agencies D Central banks

9. What is a 'mixed economy'?

A A mixed economy eliminates private ownership completely. B A mixed economy is based entirely on free market principles. C A mixed economy is an economic system that incorporates both private and public sectors. D A mixed economy relies solely on government control.

10. Which of the following is an example of a public good provided by the government?

A National defense B Public parks C Street lighting D Public transportation