Chapter 8: Building Blocks in Economics – The Problem of Choice Worksheet – Class - 9

 Chapter 8: Building Blocks in Economics – The Problem of Choice

Worksheet –

Section A: Multiple Choice Questions (MCQs)

1. Which of the following is a basic human need?

A. Luxury car

B. Mobile game

C. Food

D. Smartwatch

2. Human wants are described as

A. Limited and fixed

B. Unlimited and changing

C. Equal for everyone

D. Only related to food

3. Economics mainly studies how people

A. Produce only agricultural goods

B. Use limited resources to satisfy unlimited wants

C. Increase population

D. Spend money on entertainment

4. Which of the following is an example of a want?

A. Drinking water

B. Shelter

C. Designer shoes

D. Medicines

5. Resources are called scarce because they are

A. Free

B. Unlimited

C. Limited in quantity

D. Easily available everywhere

6. Which of the following is NOT a factor of production?

A. Labour

B. Capital

C. Technology

D. Advertisement

7. Opportunity cost refers to

A. Total income earned

B. Money spent on production

C. Value of the next best alternative forgone

D. Government tax

8. A student buys a school bag instead of a cricket bat. The cricket bat is the student's

A. Capital

B. Profit

C. Opportunity cost

D. Investment

9. The Production Possibility Curve (PPC) shows

A. Market prices

B. Consumer demand

C. Different combinations of goods produced efficiently

D. Population growth

10. Every point on the PPC represents

A. Wastage of resources

B. Efficient use of resources

C. Inflation

D. Unemployment

11. Which situation best explains scarcity?

A. Unlimited books in a library

B. Limited water with increasing demand

C. Empty classrooms

D. Unlimited electricity

12. Economics helps individuals and governments to

A. Avoid all risks

B. Make better decisions

C. Eliminate competition

D. Stop production

13. Which document reviews India's economic performance every year?

A. Census Report

B. Economic Survey

C. Budget Speech

D. Constitution

14. The Economic Survey is prepared by the

A. RBI

B. Ministry of Finance

C. Ministry of Agriculture

D. NITI Aayog

15. Which of the following is an economic entity?

A. Consumer

B. Producer

C. Government

D. All of these

16. Which is NOT one of the three central economic questions?

A. What to produce?

B. How to produce?

C. For whom to produce?

D. When to produce?

17. Choosing between sugarcane and millets mainly relates to

A. Inflation

B. What to produce

C. Taxation

D. Banking

18. Labour-intensive production uses

A. More machines and fewer workers

B. More workers and fewer machines

C. Only imported machines

D. No technology

19. Which industry is generally capital-intensive?

A. Handicrafts

B. Steel manufacturing

C. Farming by hand

D. Pottery

20. A producer selecting machines instead of manual labour is deciding

A. For whom to produce

B. How to produce

C. What to consume

D. How to trade

21. In a planned economy, major economic decisions are taken by the

A. Consumers

B. Private companies

C. Government

D. Banks

22. Which economic system mainly depends on demand and supply?

A. Planned Economy

B. Mixed Economy

C. Market Economy

D. Socialist Economy

23. Which of the following is a feature of a market economy?

A. Government fixes all prices

B. Private ownership

C. No competition

D. No innovation

24. India after 1991 is an example of a

A. Planned economy

B. Mixed economy

C. Pure market economy

D. Command economy

25. Public goods are mainly provided by the

A. Individual consumers

B. Government

C. Foreign companies

D. Farmers

26. Which of the following is a public good?

A. Private car

B. School bag

C. Street lights

D. Television

27. Economic reforms introduced in India in 1991 encouraged

A. More restrictions

B. Less competition

C. Private enterprise and global trade

D. Closing industries

28. Which economic system combines government regulation with private ownership?

A. Planned economy

B. Mixed economy

C. Traditional economy

D. Barter economy

29. Which statement best explains the problem of choice?

A. Human wants are limited.

B. Resources are unlimited.

C. Limited resources cannot satisfy unlimited wants.

D. Prices never change.

30. A government has funds to build either a hospital or a highway. This situation mainly illustrates the concept of

A. Inflation

B. Opportunity cost

C. Demand

D. Supply

Section B: Fill in the Blanks

31. Economics deals with the efficient use of __________ resources to satisfy unlimited wants.

32. Food, water and shelter are examples of human __________.

33. The value of the next best alternative given up is called __________ cost.

34. The graph showing different combinations of two goods that can be produced efficiently is called the __________.

35. Land, labour, capital and __________ are the four factors of production.

36. Human wants are unlimited but resources are __________.

37. The annual report that reviews India's economic performance is called the __________ Survey.

38. Producers, consumers and governments are known as economic __________.

39. In a __________ economy, demand and supply decide what to produce.

40. In a planned economy, major economic decisions are made by the __________.

41. India follows a __________ economy after the 1991 economic reforms.

42. Roads, parks and street lights are examples of __________ goods.

43. Labour-intensive production uses more __________ than machines.

44. Scarcity gives rise to the problem of __________.

45. Economics answers three central questions: What to produce, How to produce and __________.

Section C: Match the Following

Column A                                     Column B

46. Scarcity                                             A. Government control

47. Opportunity Cost                             B. Limited resources

48. PPC                                                     C. Demand and Supply

49. Market Economy                             D. Efficient production combinations

50. Planned Economy                             E. Next best alternative forgone

51. Mixed Economy                             F. Government and private sector together

52. Labour-intensive Production             G. More workers than machines

53. Capital-intensive Production             H. More machines than workers

54. Public Goods                                     I. Roads and parks

55. Economic Survey                             J. Annual report on the Indian economy

Section D: True or False

56. Human wants are limited and never change.

57. Scarcity means resources are available in unlimited quantity.

58. Every economic choice involves an opportunity cost.

59. The Production Possibility Curve shows inefficient use of resources.

60. Land is one of the factors of production.

61. Economists use data and analysis to make informed decisions.

62. The Economic Survey is presented after the Union Budget.

63. The question "How to produce?" is related to the method of production.

64. Labour-intensive production mainly depends on machines.

65. Capital-intensive production generally uses advanced technology.

66. In a planned economy, private companies make all major economic decisions.

67. Demand and supply play an important role in a market economy.

68. India currently follows a mixed economy.

69. Public goods can generally be used by everyone.

70. Opportunity cost helps people make better economic decisions.

Section E: Assertion and Reason

A. Both Assertion (A) and Reason (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.

71.Assertion (A): Human wants keep increasing over time.

Reason (R): People's needs, preferences and lifestyles change with time.

72.Assertion (A): Scarcity forces people to make choices.

Reason (R): Resources are available in unlimited quantity.

73.Assertion (A): Every economic decision involves an opportunity cost.

Reason (R): Choosing one option means giving up another.

74.Assertion (A): All points on the Production Possibility Curve represent efficient use of resources.

Reason (R): The PPC shows the maximum possible production with available resources.

75.Assertion (A): Economics helps individuals and governments make better decisions.

Reason (R): Economics studies how limited resources can be used efficiently.

76.Assertion (A): Data and analysis are important for economic decision-making.

Reason (R): Economic decisions should be based only on guesses.

77.Assertion (A): The Economic Survey helps the government prepare policies.

Reason (R): It reviews the country's economic performance and major sectors.

78.Assertion (A): Labour-intensive production uses more workers than machines.

Reason (R): Labour is the main factor used in such production.

79.Assertion (A): Capital-intensive production relies heavily on machinery.

Reason (R): Modern technology increases the use of machines in production.

80.Assertion (A): The question "For whom to produce?" relates to identifying consumers.

Reason (R): People have different income levels and purchasing power.

81.Assertion (A): In a planned economy, the government controls major economic decisions.

Reason (R): Most productive resources are owned or regulated by the government.

82.Assertion (A): Competition is generally higher in a market economy.

Reason (R): Private enterprises are free to produce goods and services.

83.Assertion (A): A mixed economy combines features of planned and market economies.

Reason (R): Both government and private sector participate in economic activities.

84.Assertion (A): India moved towards a more market-oriented economy after 1991.

Reason (R): Economic reforms encouraged private enterprise and competition.

85. Assertion (A): Public goods are provided mainly for public welfare.

Reason (R): Everyone can generally use public goods without excluding others.

Section F: Very Short Answer Questions

86. Define Economics.

87. What is meant by scarcity?

88. Differentiate between needs and wants.

89. What is an opportunity cost?

90. Name the four factors of production.

91. What is the Production Possibility Curve (PPC)?

92. Name the three central questions of economics.

93. What is meant by labour-intensive production?

94. What is meant by capital-intensive production?

95. What is an economic system?

96. What is a planned economy?

97. What is a market economy?

98. What is a mixed economy?

99. What is the Economic Survey of India?

100. Why is data important in economics?

Section G: Short Answer Questions

101.Explain why human wants are unlimited while resources are limited.

102.Differentiate between needs and wants with two suitable examples of each.

103.What is opportunity cost? Explain with a real-life example.

104.Explain the importance of the Production Possibility Curve (PPC) in economic decision-making.

105.Describe any four factors of production.

106.Why is data important for economists and governments while making economic decisions?

107.Explain the three central questions of economics.

108.Differentiate between labour-intensive and capital-intensive methods of production.

109.Explain the main features of a planned economy.

110.Mention any four characteristics of a market economy.

111.Why is India known as a mixed economy? Give four reasons.

112.Explain the significance of the Economic Survey of India.

Section H: Long Answer Questions

113.Explain the meaning of Economics. Why is the study of economics important in our daily life?

114.What is scarcity? Explain how scarcity leads to choice and opportunity cost with suitable examples.

115.Explain the Production Possibility Curve (PPC) with the help of a suitable example. What does it show about efficient use of resources?

116.Discuss the three central questions of economics. Why are these questions important for every economy?

117.Compare the Planned Economy and Market Economy on the basis of:

Decision making

Ownership

Competition

Prices

Government role

118.Describe the important features of a Mixed Economy. Why is it considered suitable for India?

119.Explain the economic reforms introduced in India after 1991. How did they change the Indian economy?

120."Good economic decisions depend upon proper data and analysis." Explain this statement with suitable examples.

Section I: HOTS / Competency-Based Questions

121. Decision Making:- A farmer has enough land to grow only one crop. He can grow either wheat or vegetables. Wheat gives a stable income, while vegetables can give higher profits but involve greater risk.

Question:- What economic concept is involved in this situation? Explain how the farmer should make a decision.

122. School Budget:- Your school has received extra funds. The principal must choose between building a digital classroom or expanding the library.

Question:- Which economic problem does this situation represent? Justify your answer.

123. Water Crisis:- A village has limited water available for agriculture and household use.

Question:- Explain how the concept of scarcity affects the decisions of the villagers.

124. Production Decision:- A garment factory is planning to purchase advanced machines that will reduce the number of workers required.

Question:- Which method of production is being adopted? Mention one advantage and one disadvantage.

125. Public Welfare:- The government decides to build more hospitals instead of a sports stadium.

Question:- Identify the opportunity cost of this decision. Why might the government choose hospitals?

126. Market Competition:- Two companies manufacture similar sports shoes. Both are trying to attract more customers.

Question:- How does competition benefit consumers?

127. Consumer Choice:- A family has a limited monthly income but wants to buy a refrigerator, a television and a washing machine.

Question::- How should the family use economic reasoning to make the best decision?

128. India's Economy:- A private company opens a new factory with government approval and follows labour laws.

Question:- Which type of economic system does this example represent? Give reasons.

129. Technology and Employment:- Many banks now provide online banking and ATM services instead of increasing the number of employees.

Question:- Is this labour-intensive or capital-intensive production? Explain your answer.

130. Future Planning A government spends a large amount on education, healthcare and infrastructure instead of luxury projects.

Question: How can such decisions improve the country's long-term economic development?

Section J: Case Study – 

Riya received ₹2,000 as a birthday gift. She wanted to buy a smartwatch, new shoes, and some books. However, she realized that she could not buy everything because the amount of money was limited. After comparing her needs and wants, she decided to buy the books and save the remaining money for shoes later.

Questions

131. Which economic problem is shown in the above situation? (1)

a) Inflation

b) Scarcity

c) Production

d) Trade

132. What is the opportunity cost of Riya's decision? (1)

a) Books

b) Birthday gift

c) Smartwatch and shoes purchased later

d) Buying the smartwatch immediately

133. Why was Riya forced to make a choice? (1)

a) She had unlimited money.

b) Resources (money) were limited.

c) Books were unavailable.

d) She did not like shopping.

134. State one lesson that Riya's decision teaches about economics. (1)

Case Study – 2 

A garment factory plans to increase the production of school uniforms. The owner can either employ 100 additional workers or purchase automated stitching machines. Machines are expensive but increase production speed, while workers require lower initial investment but take more time. The owner studies production costs, technology, labour availability and government policies before making a decision.

Questions

135. Which economic question is the owner trying to answer? (1)

a) What to produce

b) How to produce

c) For whom to produce

d) What to consume

136. Purchasing automated machines represents which method of production? (1)

a) Labour-intensive

b) Capital-intensive

c) Traditional

d) Household production

137. Which factor is NOT considered while deciding the production method? (1)

a) Technology

b) Cost of machinery

c) Availability of labour

d) Favourite colour of workers

138. Mention one advantage of adopting a capital-intensive method in this situation. (1)

Case Study – 3 

The Government plans to improve the quality of life of citizens. It decides to spend more money on hospitals, schools and roads while encouraging private companies to invest in industries. At the same time, it makes rules to protect consumers, maintain fair competition and provide public goods.

Questions

139. Which type of economic system is described above? (1)

a) Planned Economy

b) Market Economy

c) Mixed Economy

d) Traditional Economy

140. Which feature of the above economic system is highlighted? (1)

a) Only private ownership

b) Only government ownership

c) Government and private sector work together

d) No government intervention

141. Why does the government make rules for private companies? (1)

a) To stop all production

b) To ensure fair competition and consumer protection

c) To remove industries

d) To increase imports only

142. Give one reason why a mixed economy is considered suitable for a developing country like India. 

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