CBSE Class 9 Social Science Building Blocks in Economics: The Problem of Choice (Class 9 NCERT New) Quiz 2

1. What is the primary role of government in a market economy?

A To manage all aspects of production and distribution. B To control prices and eliminate all competition. C To regulate and ensure fair competition while providing public goods. D To provide subsidies for all private businesses.

2. What are the four factors of production in economics?

A Resources, Skills, Technology, Management B Goods, Services, Trade, Investment C Wealth, Knowledge, Time, Innovation D Land, Labor, Capital, Entrepreneurship

3. How does a decrease in the supply of a product typically affect its market price?

A A decrease in supply has no effect on market price. B A decrease in supply results in a stable market price. C A decrease in supply typically causes the market price to increase. D A decrease in supply usually leads to a lower market price.

4. What is the difference between a 'want' and a 'need' in economics?

A A 'want' is crucial for survival, while a 'need' is a luxury item. B A 'need' is essential for survival, while a 'want' is a desire for non-essential items. C A 'want' is something we must have, while a 'need' is optional for living. D A 'need' is a temporary desire, while a 'want' is a permanent requirement.

5. Why must individuals and societies make choices, according to the basic principles of economics?

A Societies make choices to avoid competition. B Individuals choose based on personal preferences. C Individuals and societies must make choices due to scarcity of resources. D Choices are made to increase wealth.

6. What is the concept of economics as a social science?

A Economics is a social science that studies how individuals, groups, and societies manage resources and make decisions. B Economics is the study of celestial bodies and their movements. C Economics is a branch of literature focusing on poetry and prose. D Economics is a field that only deals with the study of ancient history.

7. Distinguish between needs and wants with real-life examples. Needs are essential for survival, while wants are things we desire but can live without. Give one example of each.

A Need: Food; Want: Smartphone B Need: Smartphone; Want: Water C Need: Chocolate; Want: Air D Need: Internet; Want: Shelter

8. What is opportunity cost and how does it relate to rational choice?

A Opportunity cost is the value of the next best alternative foregone when making a decision. Rational choice involves considering opportunity costs to make the best possible decision. B Opportunity cost is the total amount of money spent on a decision. Rational choice ignores opportunity costs. C Opportunity cost is the time taken to make a decision. Rational choice is unrelated to opportunity cost. D Opportunity cost is the benefit gained from all alternatives. Rational choice only considers the chosen option.

9. What is the meaning of 'Scarcity'?

A Scarcity refers to the limited nature of resources available to meet unlimited wants. B Scarcity means having an abundance of resources for all needs. C Scarcity is the process of creating more resources than needed. D Scarcity refers to the unlimited nature of resources available to meet limited wants.

10. What is 'Capital' in economics?

A Capital refers to assets such as money, machinery, and buildings used to produce goods and services. B Capital refers to the total population of a country. C Capital is the process of buying and selling goods. D Capital means the natural resources found in a country.