Practice with 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 the study of how individuals, enterprises, and governments use limited resources to satisfy unlimited human wants. It explains how choices are made regarding the production, consumption and distribution of goods and services, allocation of resources, determination of prices, employment, income, investment, trade and the impact of government policies on the 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 all major economic decisions. In a Market Economy, decisions are taken mainly by private companies or individuals through the forces of demand and supply with limited government intervention. In a Mixed Economy, both the government and the private sector jointly make 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:

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 can create problems, as human wants are unlimited, but resources are limited. Excessive wants increase pressure on scarce resources, leading to overuse of natural resources, environmental degradation, and difficulty in satisfying all wants. Therefore, resources must be used wisely.

Question 3.
Ask your parents about how they make choices for everyday purchases. 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:
In my opinion, the government should not completely stay out of enterprise decisions. It should regulate businesses through laws and policies, provide public goods, protect consumers, and ensure fair competition while allowing private enterprises to innovate and grow.

Question 6.
Can you think of an example where government 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 adequate funds to both sectors because each serves an important purpose. Healthcare and education improve people’s quality of life, develop human capital and support long-term economic development. On the other hand, defence and space exploration are essential for national security, scientific progress and technological advancement. However, the government should not allocate significantly more funds to only one sector because resources are limited. Giving greater priority to one sector means reducing funds for the other, which may affect the country’s overall development. Therefore, the government should maintain a balance and allocate funds wisely according to the country’s needs and priorities. This ensures balanced development while considering the opportunity cost of every decision.

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 in reality because both planned and market economies have certain limitations. Planned economies may suffer from excessive government control, limited competition and lack of innovation, while market economies cannot meet all public needs without some government involvement. Therefore, most countries adopt a Mixed Economy, which combines private enterprise with government regulation to ensure efficiency, competition, social welfare and balanced economic development.

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 improve 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.