Worksheet – Class 9 Economics Chapter 11: Why Choices Matter – The Basics of Economics

 Worksheet – Class 9 Economics

Chapter 11: Why Choices Matter – The Basics of Economics

Section A – Very Short Answer (1 mark each)

• What is scarcity?
• Why do choices arise in economics?
• Give one example of limited resources.
• What are unlimited wants?
• Define opportunity cost.
• What is a trade-off?
• Who are economists?
• What is production?
• What is consumption?
• What is distribution?
• Name any one central problem of an economy.
• What is a market economy?
• What is a planned economy?
• What is a mixed economy?
• What is welfare?

Section B – Short Answer Questions (2–3 marks each)

• Explain scarcity with an example.
• Why are human wants unlimited?
• What do you understand by opportunity cost? Give an example.
• Explain the concept of trade-off.
• What is the role of economists?
• Define production, distribution, and consumption.
• What is meant by “What to produce”?
• Explain “How to produce”.
• What does “For whom to produce” mean?
• Give two features of a market economy.
• Give two features of a centrally planned economy.
• What is a mixed economy?
• What is welfare economy?
• Give two examples of social safety nets.

Section C – Long Answer Questions (4–5 marks each)

• Explain the problem of scarcity and the need for choice with examples.
• Describe opportunity cost and its importance in decision-making.
• Explain the three central problems of an economy with examples.
• Compare market economy, planned economy, and mixed economy.
• Discuss the role of government in a welfare economy.
• Explain the importance of social safety nets.
• Describe how economic analysis helps in solving real-life problems.

Section D – Case Study

Case Study 1: Student and Time Management

Rohan is a Class 9 student. His exams are near, but he also wants to play cricket and watch TV. He has only 5 hours after school. He cannot do everything at the same time because time is limited. So, he decides to study first and then play for a short time. By choosing to study, he gives up some entertainment. This shows scarcity of time. It also shows that choices are necessary. His decision involves a trade-off between study and leisure. The opportunity cost is the time he could have spent playing or watching TV.

Questions:

What is scarce in this case?

What is Rohan’s opportunity cost?

Case Study 2: Family Budget Decision

A family has a limited monthly income. They need to spend on food, school fees, and electricity bills. They also want to buy a new TV. However, they cannot afford everything at once. So, they decide to spend on basic needs first. They postpone buying the TV. This shows scarcity of money. The family makes a choice based on priorities. Buying essentials means giving up luxury items. The opportunity cost is the TV they did not buy. This helps them manage their resources wisely.

Questions:

What problem does the family face?

What is the opportunity cost here?

Case Study 3: Farmer’s Choice

A farmer has limited land and water. He can grow either wheat or vegetables. Wheat gives stable income, while vegetables give higher profit but are risky. He must choose one crop. He decides to grow wheat to ensure steady earnings. This decision shows scarcity of resources like land and water. It also involves a trade-off between risk and stability. By choosing wheat, he gives up the chance to earn more from vegetables. The opportunity cost is the profit from vegetables. This reflects the central problem of “what to produce.”

Questions:

What choice did the farmer make?

What is the opportunity cost?

Section E – Fill in the Blanks

• Resources are __________ but wants are unlimited.
• Opportunity cost is the value of the __________ alternative.
• A trade-off means giving up one thing to get __________.
• In a market economy, prices are determined by __________ and supply.
• A planned economy is controlled by the __________.
• India follows a __________ economy.
• Welfare means the __________ of people.
• Social safety nets protect the __________ people.

Section F – True or False

• Human wants are limited.
• Scarcity leads to choice.
• Opportunity cost is always measured in money.
• Government has no role in a market economy.
• Mixed economy includes both private and public sectors.
• Welfare economy focuses only on profit.
• Social safety nets reduce poverty.

Section G – Match the Following

Column A                                                         Column B

Scarcity                                                                 Limited resources

Opportunity Cost                                                 Next best alternative

Market Economy                                                 Private ownership

Planned Economy                                                 Government control

Mixed Economy                                                 Both sectors

Welfare                                                                 Well-being

Section H – Assertion and Reason

(a) Both A and R are true and R is the correct explanation of A

(b) Both A and R are true but R is not the correct explanation of A

(c) A is true but R is false

(d) A is false but R is true

Assertion: Scarcity forces people to make choices.

Reason: Resources are unlimited.

Assertion: Opportunity cost helps in decision-making.

Reason: It compares different alternatives.

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