NCERT Class 9 Social Science Important Chapter 8 Building Blocks in Economics: The Problem of Choice Solutions English Medium As Per New Syllabus. NCERT Class 9 Social Science Important Chapter 8 Building Blocks in Economics: The Problem of Choice Notes to each chapter is provided in the list so that you can easily browse throughout different chapter NCERT Class 9 Social Science Additional Question Answer Download PDF and select needs one. CBSE Class 9 Social Science Additional Solutions.
NCERT Class 9 Social Science Important Chapter 8 Building Blocks in Economics: The Problem of Choice
Also, you can read the CBSE book online in these sections Solutions by Expert Teachers as per (CBSE) Book guidelines. NCERT Class 9 Social Science Important Solutions. These solutions are part of NCERT All Subject Solutions. Here we have given NCERT Class 9 Social Science Important Notes in English Medium Solutions for All Subject, You can practice these here.
Building Blocks in Economics: The Problem of Choice
Chapter – 8
| Part – I: Economics |
| Important Question Answer |
A. Fill in the Blanks
1. The value of the next best alternative that is given up while making a choice is called __________.
Ans: Opportunity cost.
2. The Production Possibility Curve shows different combinations of goods that can be produced using all available __________.
Ans: Resources.
3. Economics is concerned with making the best use of __________ resources to satisfy unlimited wants.
Ans: Limited.
4. In a market economy, most production decisions are guided by the forces of __________ and supply.
Ans: Demand.
5. India adopted major economic reforms in the year __________ to encourage private enterprise and competition.
Ans: 1991.
B. True or False
1. Unlimited resources make economic choices unnecessary.
Ans: False.
2. Every point on the Production Possibility Curve represents efficient use of available resources.
Ans: True.
3. In a planned economy, private enterprises independently decide what and how much to produce.
Ans: False.
4. Economists use data and analysis to help individuals and governments make better decisions.
Ans: True.
5. A mixed economy combines features of both planned and market economies.
Ans: True.
C. Short Answer Questions
1. Why do limited resources force individuals and governments to make choices?
Ans: Limited resources cannot satisfy unlimited human wants. Therefore, individuals, enterprises, and governments must choose how to use available resources efficiently to meet the most important needs.
2. What is meant by opportunity cost?
Ans: Opportunity cost is the value of the next best alternative that is sacrificed when one option is chosen over another.
3. Why is the Production Possibility Curve useful in economics?
Ans: The Production Possibility Curve helps show different combinations of goods that can be produced efficiently with available resources. It also illustrates trade-offs and opportunity costs.
4. Why do economists rely on data instead of guesswork?
Ans: Economists use data to analyse economic conditions, compare alternatives, identify risks, and make informed recommendations for better decision-making.
5. Explain the question “For whom to produce?”
Ans: This question focuses on deciding which group of consumers should receive the goods and services produced based on their needs, income, preferences, and purchasing power.
6. What factors influence the choice between labour-intensive and capital-intensive production?
Ans: The choice depends on the cost and availability of labour, machinery, technology, nature of the product, government regulations, and production costs.
7. How does a market economy encourage innovation?
Ans: A market economy encourages innovation because producers compete with one another to improve quality, reduce costs, and satisfy consumer demand.
8. Why is a mixed economy considered practical in modern times?
Ans: A mixed economy combines private enterprise with government regulation, allowing competition, innovation, consumer protection, public goods, and social welfare to exist together.
D. Long Answer Questions
1. Explain how scarcity leads to economic choices and opportunity cost.
Ans: Scarcity exists because human wants are unlimited while resources are limited. As a result, individuals, enterprises, and governments cannot satisfy every want. They must choose among alternatives. Whenever one choice is made, another valuable option is given up. The value of this forgone alternative is known as opportunity cost. Understanding opportunity cost helps people make better decisions by comparing the benefits and costs of different alternatives.
2. Describe the three key questions that economics seeks to answer.
Ans: Economics addresses three important questions:
(i) What to produce? It decides which goods and services should be produced and in what quantities.
(ii) How to produce? It determines the most efficient method of production by selecting the right combination of land, labour, capital, and technology.
(iii) For whom to produce? It decides how goods and services should be distributed among different groups of consumers according to their needs and purchasing power. These questions help ensure efficient use of scarce resources.
3. Compare the features of planned, market, and mixed economies.
Ans: In a planned economy, the government controls production, pricing, and distribution of goods and services. In a market economy, private individuals and firms make production decisions based mainly on demand and supply with limited government intervention. A mixed economy combines both systems, where private businesses operate freely while the government regulates markets, provides public goods, protects consumers, and supports welfare programmes. Most modern countries follow the mixed economy model.
4. Explain the importance of data and analysis in economic decision-making.
Ans: Good economic decisions require accurate data and careful analysis. Economists study surveys, government reports, financial statements, and market trends to understand economic conditions. Their analysis helps governments prepare policies, businesses improve efficiency, investors make better investment decisions, and society understand economic opportunities and risks. Data-based decisions reduce uncertainty and improve the effective use of resources.
5. Discuss why India’s economy moved towards a mixed economic system after 1991.
Ans: After Independence, India followed a state-led economic system where the government controlled many industries and economic activities. By 1991, the country faced serious economic challenges. To improve growth, the government introduced economic reforms that reduced excessive regulations, encouraged private enterprise, promoted competition, and opened the economy to global trade and investment. However, the government continued to regulate important sectors and provide public goods. Therefore, India gradually developed into a mixed economy that combines market forces with government intervention.
Buy Now