Chapter 8: Building Blocks in Economics The Problem of Choice — Online MCQ Test
SOCIAL · Grade 9 · CBSE(NCERT)
Practice Chapter 8: Building Blocks in Economics The Problem of Choice with a free chapter-wise online MCQ test.
This chapter covers: Economics Scarcity Resources Choice Opportunity cost Wants Needs Resource allocation Decision making Trade offs Production Consumption.
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Chapter 8: Building Blocks in Economics The Problem of Choice — Important Questions & Answers
What does 'scarcity' mean in economics?
- A. Having unlimited resources for all needs
- B. Resources are limited compared to human wants
- C. Only money is limited
- D. Only natural resources are limited
Answer: B. Resources are limited compared to human wants
Scarcity means that resources are limited while human wants are unlimited. This is the basic economic problem.
Scarcity means that resources are limited while human wants are unlimited. This is the basic economic problem.
Which of the following is an example of a 'want'?
- A. Food for survival
- B. Water for drinking
- C. A new smartphone for entertainment
- D. Air to breathe
Answer: C. A new smartphone for entertainment
A smartphone for entertainment is a want because it is not necessary for survival, unlike food, water, and air.
A smartphone for entertainment is a want because it is not necessary for survival, unlike food, water, and air.
A student has money to buy either a textbook or a notebook set. If the student buys the textbook, what is the opportunity cost?
- A. The money saved
- B. The notebook set not bought
- C. The cost of the textbook only
- D. The school bag
Answer: B. The notebook set not bought
The opportunity cost is the next best alternative forgone. Here, it is the notebook set that was not purchased.
The opportunity cost is the next best alternative forgone. Here, it is the notebook set that was not purchased.
Which of the following situations best shows the problem of choice?
- A. A person eats breakfast because food is available
- B. A shopkeeper keeps many items in stock
- C. A government must decide whether to spend more on roads or hospitals with a limited budget
- D. A student reads a textbook at home
Answer: C. A government must decide whether to spend more on roads or hospitals with a limited budget
The problem of choice arises when resources are limited and different alternatives compete for them. Government spending decisions clearly show this.
The problem of choice arises when resources are limited and different alternatives compete for them. Government spending decisions clearly show this.
Which option correctly fills the blank: Human wants are ______ but resources are ______.
- A. limited, unlimited
- B. unlimited, limited
- C. equal, equal
- D. fixed, permanent
Answer: B. unlimited, limited
In economics, wants are considered unlimited, while resources are limited. This mismatch creates scarcity.
In economics, wants are considered unlimited, while resources are limited. This mismatch creates scarcity.