NCERT Book Class 9 Social Science (Understanding Society India and Beyond PART-I) Chapter 8 Building Blocks in Economics: The Problem of Choice

Chapter 8
Building Blocks in Economics:
The Problem of Choice
The Big Questions
1. What does economics deal with?
2. What are the key questions in economics?
3. How do different economic systems address these questions?

If you had to choose, would you spend your pocket money on snacks
or save it for a new pair of shoes? If your school library had only five
copies of a new storybook but 20 students wanted to read it, who Market: A
place where
should get the book first? Can the students share them or should the
buying and
school buy more copies? Which type of crop should a farmer grow selling of
based on the condition of the soil, rainfall, and market demand? products and
Should an enterprise employ more labour or capital in the production services takes
place. It could
process? Should the government spend more on building highways
be a physical
or hospitals? market or a
These are not random questions; rather, these are examples of virtual one on
the internet.
economic choices that individuals, enterprises, and governments
have to make.
Some of our preferences are needs, such as essentials like food, water,
and shelter, while others are wants, like gadgets, vacations, or luxury
items. Human wants are unlimited and keep changing; for instance,
people may want to upgrade from a bicycle to a motorbike and then
to a car.

Needs

Wants

Fig. 8.1. Needs vs wants