Practice with Understanding Society India and Beyond Class 9 Solutions and Class 9 Social Science SST Chapter 8 Building Blocks in Economics The Problem of Choice Question Answer NCERT Solutions to improve your exam performance.
Class 9 SST Chapter 8 Building Blocks in Economics The Problem of Choice Question Answer
Class 9 Building Blocks in Economics The Problem of Choice Question Answer
The Big Questions (Page No. 183)
Question 1.
What does economics deal with?
Answer:
Economics deals with how individuals, businesses, and governments make choices to use limited resources to satisfy unlimited wants. It studies the allocation of resources and helps in making decisions that improve well-being. Economics also explains how consumers, producers, and governments interact in an economy.
Question 2.
What are the key questions in economics?
Answer:
Economics seeks to answer three key questions: What to produce, How to produce, and For whom to produce. These questions arise because resources are scarce while human wants are unlimited. Every economy must decide what goods and services to produce, the methods of production, and who will receive the output.
Question 3.
How do different economic systems address these questions?
Answer:
Different economic systems answer these questions in different ways. In a planned economy, the government makes major economic decisions. In a market economy, demand and supply determine production and distribution with limited government intervention. A mixed economy combines both systems, where the government and private sector share responsibility for economic decisions.
Building Blocks in Economics The Problem of Choice Question Answer Class 9
InText Questions
Let’s Explore
Question 1.
List three things your parents bought this month. Can you classify them into needs or wants? (Page No. 184)
Answer:
table-1
Question 2.
Do you think having too many wants may create problems? Why or why not? (Page No. 184)
Answer:
Yes, having too many wants may create problems because resources such as money, time, and materials are limited. People may spend beyond their means or waste resources while trying to satisfy every want. It can also increase pressure on the environment due to excessive consumption.
Question 3.
Ask your parents about how they make choices for everyday purchase. What is the opportunity cost of making a particular decision? (Page No. 186)
Answer:
My parents compare prices, quality, and necessity before making everyday purchases. They usually buy essential items first and postpone less important expenses. For example, if they choose to buy groceries instead of eating at a restaurant, the opportunity cost is the restaurant meal they give up.
Question 4.
How do you decide to spend your time? Is time a scarce resource? (Page No. 186)
Answer:
I decide how to spend my time by balancing studies, hobbies, and rest. I try to complete important tasks first and then use the remaining time for recreation. Yes, time is a scarce resource because it is limited and cannot be stored or recovered once it is spent.
Question 5.
In your opinion, should the government completely stay out of enterprise decisions? (Page No. 191)
Answer:
No. The government should not completely stay out of enterprise decisions. Even in a market economy, the government ensures safety, law and order, while in a mixed economy it also regulates private enterprises, provided public goods, protects consumers, ensures fair competition, ‘ and implements welfare programmes\Therefore, government involvement is necessary for^he proper functioning of the economy.
Question 6.
Can you think of an example where govemmept action helped or harmed an industry or sector? (Page No. 191)
Answer:
The economic reforms of 1991 helped industries by reducing excessive regulations^ encouraging private enterprise, opening the economy to global trade and investment, and increasing competition. These reforms made the economy more market- oriented while retaining an important role for the government.
Think About It
Question 1.
Should the government allocate more funds to healthcare’ and education or defence and space exploration? Why? (Page No. 189)
Answer:
The government should allocate funds to both sectors, but greater priority should usually be given to healthcare and education because they directly improve people’s quality of life and help build a skilled, healthy workforce. Better healthcare increases life expectancy, while education promotes knowledge, employment, and economic growth.
However, defence and space exploration are also important for national security, technological advancement, and scientific progress. Therefore, a balanced allocation of resources is necessary to ensure both human development and national development.
Building Blocks in Economics The Problem of Choice Class 9 Questions and Answers
Questions and Activities (Page No. 193-194)
Question 1.
Why do you think people’s wants keep changing over time? How does this affect production in an economy? Why cannot all our wants be satisfied?
Answer:
People’s wants keep changing due to changes in income, technology, fashion, and lifestyles. As consumer preferences change, producers must adjust the type and quantity of goods and services they produce. All wants cannot be satisfied because resources such as land, labour, capital, and time are limited, while human wants are unlimited.
Question 2.
‘Human wants are unlimited and keep changing’. How do you think this constant desire for more creates pressure on the environment? Can the fulfilment of wants and the extraction of resources be balanced?
Answer:
The constant desire for more goods increases the extraction of natural resources, leading to pollution, deforestation, and depletion of resources. However, a balance can be achieved through sustainable development, responsible consumption, recycling, and the use of renewable resources. This helps meet human needs while protecting the environment.
Question 3.
Can you think of a resource in your region that is scarce but used wastefully? How could it be managed better?
Answer:
Water is a scarce resource in many regions but is often wasted through leaks, overuse, and inefficient irrigation. It can be managed better through rainwater harvesting, water-saving technologies, repair of leaks, and public awareness about conservation. These measures can help ensure its availability for fixture generations.
Question 4.
Which economic system—market, planned, or mixed—do you think gives people the most freedom? Which economic system is best suited for promoting innovation? Why?
Answer:
A market economy gives people the most economic freedom because individuals and private enterprises make most economic decisions, while the government has limited intervention. It is also best suited for promoting innovation because competition among producers encourages them to improve the quality of goods and services, lower prices, and develop new products and technologies. However, the chapter also points out that most countries today follow a mixed economy, where both the government and the private sector play important roles.
Question 5.
Critically examine why pure economic systems rarely exist in reality. Assess the limitations of such systems and justify why a mixed economy is often considered a more practical and effective approach in real-world contexts.
Answer:
Pure economic systems rarely exist because each has certain limitations. A market economy may lead to inequality and neglect public welfare, while a planned economy may reduce efficiency and innovation due to excessive government control. A mixed economy combines the advantages of both systems by allowing private enterprise while ensuring government regulation and provision of public goods, making it more practical and effective.
Question 6.
A student has ?100 and must choose between buying a notebook or saving the money for buying a tennis racket later. Which economic concept best explains this situation?
(a) Demand
(b) Opportunity cost
(c) Production
(d) Inflation
Answer:
(b) Opportunity Cost
The student must choose one option and give up the other. The value of the forgone alternative’s known as opportunity cost.
Question 7.
How does understanding opportunity cost irhprove the quality of economic decision-making? ^
Answer:
Understanding opportunity cost helps individuals and organisations compare alternatives before making decisions. It encourages the efficient use of limited resources by considering the benefits of the option that is given up. This leads to more informed and rational choices.
Question 8.
Can effective economic decisions be made without reliable data? Support your answer with an example.
Answer:
No, effective economic decisions cannot be made without reliable data. For example, a company deciding how many smartphones to produce needs accurate information about consumer demand. Without reliable data, it may overproduce or underproduce, leading to losses and inefficiency.
Question 9.
Analyse how a country’s present economic choices can shape its long-term future. Why is it important to consider future consequences while making economic decisions today?
Answer:
A country’s present economic choices influence its future growth, employment, infrastructure, and standard of living. Investments in education, healthcare, and technology can create long¬term benefits for society. Considering future consequences helps ensure sustainable development and prevents problems such as environmental degradation and resource depletion.
Question 10.
Identify a news article from any newspaper of your choice about a product or commodity where producers or companies are deciding how much to produce or supply. Write 2-3 sentences explaining the example you found and why the production decision was made.
Answer:
A newspaper report stated that automobile companies increased the production of electric vehicles due to rising consumer demand and government incentives. The companies decided to supply more electric vehicles to meet market demand and expand their share in the growing EV market. This production decision was influenced by changing consumer preferences and future growth opportunities.