SEBA Board Solution Class 9 Economics Chapter 1 Basic Concepts of Economics
SEBA Board Solution Class 9 Economics Chapter 1 Basic Concepts of Economics full exercise Solution by Social Science Economics Sir. Here on this page we have provided SEBA – The Board Of Secondary Education, Assam Class 9 Political Science & Economics Chapter 1 all Question Answer Solution.
Medium |
English |
Subject |
Social Science (Economics) |
Chapter |
1 |
Chapter Name |
Basic Concepts of Economics |
Topic |
Solution |
GIVE VERY SHORT ANSWER:
1.) The word ‘economics’ has been derived from the word of which language?
The word ‘Economics ‘has been derived from the Greek word ‘Oikonomia’ which means ‘family’ and ‘nomos’ means ‘rules.
2) The word ‘economics’ has been derived from which word?
The word ‘economics’ has been derived from the word ‘Oikonomia’ which means ‘family’ and ‘nomos’ means ‘rules.
3.) Who is the father of economics?
The father of economics is Adam Smith.
4.) Who has given the wealth-based definition of economics?
The wealth- based definition is given by Economist Adam Smith.
5.) Who has given the welfare-based definition of economics?
The welfare- based definition is given by Economist Alfred Marshall.
6.) Who has given the scarcity definition of economics?
The scarcity definition of economics is given by Economist Lionel Robbins.
7.) In which book and when did Adam Smith give his definition of economics?
Adam Smith in his famous book ‘An Enquiry into the Nature and Causes of the Wealth of Nations’ which was published in 1776 defined economics as “the science of wealth”.
8.) In which book and when did Alfred Marshall give his definition of economics?
Economist Alfred Marshall in his book ‘Principles of Economics’ published in 1980 wrote his definition of economics based on the principles of welfare.
9.) In which book and when did Lionel Robbins give his definition of economics?
Economist Lionel Robbins in his book ‘An Essy on the Natureand significance of Economic Science’ which was published in 1932 gave his definition of definition about economics.
10.) Who said that the definition of economics given by Adam Smith is the ‘Gospel of Mammon’?
Social scientists like Carlyle and Ruskin criticised the definition of economics given by Adam Smith ass the “Gospel of the Mamon”.
11.) Who offered the definition of economics based on efficiency?
Economists Samuelson and Nordhaus combinedly coined the concept of ‘scarcity’ with ‘efficiency’.
12.) What is the power of a commodity to satisfy human wants called?
Any good or service which has the power to satisfy human wants is known as ‘Utility’.
13.) What are the produced means of production called?
The produced means of production is called Capital.
14. The words ‘micro’ and ‘macro’ have been derived from which words?
The word Micro- Economics has been derived from the Greek word ‘Mikros’ meaning ‘small’ and he word ‘Macro-Economics’ comes from the Greek word “Makros’meaning ‘large’.
GIVE SHORT ANSWER:
1.) Write the definition of economics given by Adam Smith.
Adam Smith is considered as the father of economics and in his famous book,” An Enquiry into the nature and Causes of the Wealth of Nations” which was published in 1776, he described about Economics as ‘the science of wealth’ which was considered as a wealth -based definition.
2.) Write the definition of economics given by Marshall.
Alfred Marshall who was a Cambridge economist, in his book, ‘Principles of Economics’ published in 1890 defined Economics based on the principles of welfare. According to Marshall, economics is the study of mankind in the ordinary business of life. It deals with part of individual and social action which is well connected with the usage of material requirement of well -being. Thus, it is study of wealth and human beings together.
3.) Write the definition of economics given by Robbins.
Economist Lionel Robbins in his book, “An Essay on the Nature and significance of Economic Science” published in 1932, defined “Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.” The definition is based on three main points that humans have unlimited wants, resources are limited and resources which are scarce have alternative uses.
4.) Write the definition of economics given by Samuelson and Nordhaus.
Economists Samuelson and Nordhaus combined the concept of ‘scarcity’ and ‘efficiency’ and coined the new definition which is “Accepting the reality of the existence of scarcity, the efficient use of resources by the society to produce valuable commodities, form the subject matter of economics” The manner in which scarce resources are made productive is the study matter of economics.
5.) What are the basic concepts of the definition of economics given by Robbins?
The basic concepts of the definition of economics brought forward by Economist Lionel Robbins in his book, “An Essay on the Nature and significance of Economic Science” published in 1932 are i. Human wants are always unlimited, ii. Resources to satisfy humans wants are limited. Iii. Scarce resources have alternative uses. The three points raise the economic problems or problems of choices that are made by humans. The economic problem or problems of choice deals with conflict of decision that which requirement of humans are most important and requires to be fulfilled by scarce resources. Economist Robbins theory is also known as the ‘definition of scarcity.’
6.) What is Micro economics?
The word Micro- Economics is derived from the Greek word ‘Mikros’ meaning ‘small’. Micro Economics deals with understanding the economic behaviour of persons and organisations individually. The behaviour of a consumer, a producer, or a productive enterprise, a market, a creditor, a saver in a given economic situation is discussed in Micro-Economics. Factors like supply, demand, competition and the prices of items are discussed.
7.) What is Macro economics?
Macro-Economics- The word ‘Macro-Economics’ has been derived from the Greek word ‘Markos’ which means ‘large’ The total behaviour of the country or the behaviour of all consumers, producers etc in a given economic situation are discussed as the subject matter of Macro-Economics. The study of the population, employment, industrialisation, agriculture etc of a country is included in Macro-Economics.
8.) Show the differences between free goods and economic goods.
Difference between Free Goods and Economic Goods
FREE GOODS | ECONOMIC GOODS |
Free goods are those which are found in our environment. They are considered as gifts of nature. | Economic goods are those goods that are produced by humans as per the requirement and demand. |
These goods donot have value in money. | These goods are valued in money. |
Free Goods are not considered as subject of study in economics. | These goods are very important subject in Economics. |
Example: Heat, Wind, Sun, Rain etc are all free goods. | Example- Electricity, food, clothes etc. |
9.) What is National Income?
National Income- The monetary value of all goods and services produced in a country in a given financial year is known as National Income. It is calculated by adding all the consumptions, government expenses, investments which are made inside the country, the total exports of the nation. The deduction of imports from exports, foreign production by the resident residing in the country is also done to receive the exact amount of national income.
10.) What is Per Capita Income?
Per Capita Income- The Per Capita Income of a country can be found out by dividing the total national income by the total population of the nation.
Per Capita Income= National Income / Population of the Country.
GIVE LONG ANSWERS:
1.) Explain with examples, the importance of the study of economics.
The study of Economics is a necessity for many reasons. First of all, studying Economics is required for a healthy democracy. The citizens are required to have a sound knowledge about the economic activities that are taking place in their own life as well as in the country. The people who are paying taxes want to know about the ways through which the government collects the revenues, how and on which areas the government is making expenses and if the revenue collected is being spent on correct heads of development. The social scientists also study about the causes of poverty for which they need to study about Economics. The conscious customers also want to know about the reasons of price rise of different commodities. Important issues like globalisation and its merits and demerits, economic development and many other issues are dealt in study of Economics.
2.) Which definition of economics is the most acceptable and why? Explain.
The most acceptable definition is of Economist Lionel Robbins who in his famous book, ‘An Essay on the Nature and significance of Economic Science’ published in 1932 defined Economics as a science which studies human behaviour as a relationship between ends and scarce which have alternative uses. This definition also puts forward certain points of discussion that needs of humans are unlimited and resources are limited and scarce resources need to have alternative uses. These three points are effective in understanding and deciding on the importance of any particular want among all the unlimited wants of humans. These three points also act as deciding factors in deciding the problems of choices.
3.) Write about the scope of economics.
The scope or range of economics comprises all the monetary activities that takes place in a society. The topics which are mainly of importance are as follows:
I.) Consumption -The economic activities which help in achieving satisfaction of our wants is known as Consumption. The factors like consumption activities, consumer’s equilibrium etc fall under the scope of economics.
ii.) Production – The formation of needful commodities and services is known as Production. The factors of production -land, labour, capital and organisation, the laws of production, monetary system and producer’s equilibrium all these factors are dealt in Economics.
iii.) Distribution-If the goods and items are distributed among the consumers then only the consumers can consume. The study of laws and theories which are required for the distribution of goods are also studied in the scope of economics.
iv.) Exchange- All goods are not produced by single person or area, thus exchange of items between individuals, regions and countries take place through internal and international trade. These trades are discussed in the scope of Economics.
v.) Money- The barter system is not reasonable method and with creation of money removed the difficulties of barter system and simplified the process of exchange. The role of money, its functions, types of money are part of study of economics.
vi.) Income- The income of the nation, per capita income, production and distribution are part of the study of economics.
vii.) Public Finance– It is the study of public revenue, expenditure and debt and an integral part of economics.
viii.) Welfare Economics-The welfare of individual and community after any economic activity is also studied in the scope of Economics.
ix.) Economics of Environment- Industrialisation resulted into rapid economic development which resulted in breaking of equilibrium of the environment and it is a cause of concern of the social scientists. The study of environment has been the subject of study in the scope of economics for maintaining the environmental equilibrium.
x.) Efficiency– The sensible, reasonable usage of resources which are available in less amount for the development of the society is also an important part of the scope of economics.
Along-with the above mentioned topics, the factors like global economics, sustainable development are also included in the scope of economics as the modern world is changing and the range of the subject is never static.
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