MCQ on SEBA Class 9 Economics Chapter 1-Basic Concepts of Economics

MCQ on SEBA Class 9 Economics Chapter 1-Basic Concepts of Economics

MCQs on 1.1: The Necessity of Economics

1. Why is the study of economics necessary in a democracy?
(A) To learn farming techniques
(B) To become a businessman
(C) To increase civic awareness
(D) To become a politician

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2. The word ‘Economics’ has been derived from____

(A) Latin Word
(B) Greek Word
(C) Arabic Word
(D) None of the above

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MCQs on 1.2 DEFINITION OF ECONOMICS

3. Who is known as the father of economics?
(A) Alfred Marshall
(B) Lionel Robbins
(C) Samuelson
(D) Adam Smith

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4. What kind of definition did Adam Smith give?
(A) Scarcity-based definition
(B) Welfare-based definition
(C) Wealth-based definition
(D) Efficiency-based definition

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5. In which book did Adam Smith publish his definition of economics?
(A) Principles of Economics
(B) An Essay on the Nature and Significance of Economic Science
(C) An Enquiry into the Nature and Causes of the Wealth of Nations
(D) Economics

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6. Which economist gave the welfare-based definition of economics?
(A) Adam Smith
(B) Alfred Marshall
(C) Lionel Robbins
(D) Amartya Sen

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7. Why was Adam Smith’s definition criticized as the “Gospel of Mammon”?
(A) It focused too much on poverty
(B) It emphasized wealth over human well-being
(C) It ignored scarce resources
(D) It only discussed services

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8. What was the main criticism of Marshall’s definition?
(A) It focused too much on non-material goods
(B) It ignored human welfare
(C) It did not include non-material services
(D) It was too complex

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9. Who gave the scarcity-based definition of economics?
(A) Alfred Marshall
(B) Lionel Robbins
(C) Samuelson
(D) A.C. Pigou

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10. What are the three key points in Robbins’ definition?
(A) Wealth, welfare, and work
(B) Wants, consumption, and income
(C) Unlimited wants, limited resources, and alternative uses
(D) Income, savings, and spending

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11. Who gave a definition of economics that combined scarcity with efficiency?
(A) Robbins and Hicks
(B) Samuelson and Nordhaus
(C) Adam Smith and Alfred Marshall
(D) Pareto and Amartya Sen

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12. What is the main focus of Samuelson and Nordhaus’ definition?
(A) Creating money
(B) Efficient use of scarce resources
(C) Selling goods for profit
(D) Studying history

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13. Who criticized Adam Smith’s definition of economics?
(A) Hicks and Pigou
(B) Carlyle and Ruskin
(C) Sen and Pareto
(D) Robbins and Marshall

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14. According to Robbins, what gives rise to economic problems?
(A) Rise in income
(B) Increase in population
(C) Problem of choice due to limited resources
(D) Growth of industries

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15. What problem does Lionel Robbins’ definition highlight?
(A) Problem of wealth
(B) Problem of choice
(C) Problem of production
(D) Problem of distribution

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16. What is a criticism of Lionel Robbins’ definition of economics?
(A) It ignores wealth creation
(B) It overlooks economic development
(C) It focuses only on material goods
(D) It does not mention human welfare

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17. In which year was Adam Smith’s book “An Enquiry into the Nature and Causes of the Wealth of Nations” published?
(A) 1790
(B) 1776
(C) 1890
(D) 1932

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18. In which year did Alfred Marshall publish his book “Principles of Economics”?
(A) 1876
(B) 1901
(C) 1932
(D) 1890

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MCQs on 1.3 – Scope of Economics

19. What does the scope of economics mainly cover?
(A) Non-monetary activities of society
(B) Monetary activities of society
(C) Studies of industry
(D) None of the above

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20. Which of the following activities are included in the scope of economics?
(A) Consumption
(B) Production
(C) Distribution
(D) All of the above

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21. The activities which lead to the satisfaction of our wants are known as_____
(A) Production
(B) Consumption
(C) Exchange
(D) Investment

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22. Which of the following is concerned with the creation of goods and services?
(A) Exchange
(B) Consumption
(C) Production
(D) Distribution

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

(A) Capital 
(B) Land 
(C) Labour
(D) Resources

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24. Which of the following helps in the process of production?
(A) Capital only
(B) Land and labour only
(C) Four factors – land, labour, capital, and organisation
(D) Only natural resources

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25. What is studied under ‘exchange’ in economics?
(A) Only internal trade
(B) Only international trade
(C) Market policies only
(D) Both internal and international trade

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26. Which example best shows the barter system discussed in economics?
(A) Buying clothes with money
(B) Jonbeel Mela in Assam
(C) Online shopping with a credit card
(D) Paying taxes to the government

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27. What does the study of public finance in economics include?
(A) Public revenue and public expenditure
(B) Public revenue and public debt
(C) Public revenue, public expenditure, and public debt
(D) None of the above

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28. Which economist is NOT linked with welfare economics?
(A) Amartya Sen
(B) A.C. Pigou
(C) Vilfredo Pareto
(D) Adam Smith

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29. What is the main goal of efficiency in economics?
(A) Reducing population
(B) Using scarce resources wisely
(C) Control environmental pollution
(D) None of the above

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30. Why is environmental economics included in the scope of economics?
(A) To control environmental pollution
(B) To restore environmental equilibrium
(C) Using scarce resources wisely
(D) None of the above

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MCQs on 1.4 – Some Fundamental Concepts of Economics

31. What do we call anything that satisfies human wants in economics?
(A) Capital
(B) Market
(C) Income
(D) Goods

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32. Which of the following is an example of a tangible good?
(A) Teaching service
(B) Medical advice
(C) A chair
(D) A speech

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33. Which of the following is an example of an intangible good?
(A) Chair
(B) Car
(C) Teaching service
(D) Table

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34. What do we call goods that are used for further production?
(A) Free goods
(B) Consumer goods
(C) Capital goods
(D) Intangible goods

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35. Which of the following is a free good?
(A) Food
(B) Electricity
(C) Rain
(D) Clothes

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36. __________satisfy our wants directly
(A) Capital goods
(B) Consumption goods
(C) Free goods
(D) Intermediate goods

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37. The power of any good or service to satisfy human wants is known as________
(A) Value
(B) Price
(C) Demand
(D) Utility

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38. Which characteristic must a good have to be considered wealth in economics?
(A) It must be abundant
(B) It must have utility, scarcity and availability
(C) It must be non-transferable
(D) It must have utility, scarcity, transferability, and externality

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39. The desire for the satisfaction from a commodity is known as______
(A) Wealth
(B) Utility
(C) Wants
(D) Desire

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40. What is demand in economics?
(A) Any desire for a commodity
(B) Desire for a commodity backed by the ability to pay
(C) The supply of goods in the market
(D) The price of a commodity

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41. The means or appliances which help production are known as_____
(A) Capital
(B) Commodity
(C) Supply
(D) Savings

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42. In economics, what is a market?
(A) A place to keep goods
(B) A place where goods are bought and sold
(C) An arrangement where buying and selling happen
(D) A storage room

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43. The portion of income which is not used for consumption is known as _____
(A) Capital
(B) Income
(C) Consumption
(D) Savings

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44. What is investment in economics?
(A) Money saved in a bank
(B) Capital used for future consumption
(C) Capital used for production
(D) Money saved in a piggy bank

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45. What is national income?
(A) Total goods and services produced in a year
(B) The monetary value of all goods and services produced in a year
(C) Total income of a nation
(D) Government’s income

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46. What is per capita income?
(A) Income per family
(B) National income divided by population
(C) Income from exports only
(D) Monthly income of a citizen

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41. Which of the following is a flow concept?
(A) Capital
(B) Factory building
(C) Investment
(D) Land

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42. What is the formula for calculating per capita income?
(A) Total income × Population
(B) National income ÷ Population
(C) National income + Population
(D) Total savings ÷ Population

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43. What is a ‘stock’ concept in economics?
(A) Investment
(B) Price
(C) Capital
(D) National Income

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44. Why is sunlight not considered wealth?
(A) It is not useful
(B) It is not scarce or transferable
(C) It has a high price
(D) It is dangerous

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45. Which of these is NOT a characteristic of wealth in economics?
(A) Utility
(B) Scarcity
(C) Abundance
(D) Transferability

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MCQs on 1.5 – Micro and Macro Economics

46. Which of the following is studied under microeconomics?
(A) National income
(B) Consumer behaviour
(C) Population growth
(D) Inflation rate

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46. What type of approach does microeconomics follow?
(A) General
(B) International
(C) Individual
(D) Political

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47. What type of approach does macroeconomics follow?
(A) Personal
(B) Group
(C) Regional
(D) Aggregate

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48. Which of the following is NOT studied in macroeconomics?
(A) National income
(B) General price level
(C) Savings of a person
(D) Agricultural growth of a country

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49. Which field of economics includes topics like inflation and unemployment in a country?
(A) Microeconomics
(B) Home economics
(C) Macroeconomics
(D) Business studies

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50. Microeconomics deals with which of the following?
(A) Entire economy
(B) One consumer or one firm
(C) Government expenditure
(D) Population census

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