NCERT Class 9 Chapter 8: Building Blocks in Economics MCQs for UPSC

1. In economics, how are basic 'needs' distinguished from 'wants'?

1. A.Needs are essential requirements for survival (such as food, water, and shelter), whereas wants are desires for non-essential goods and luxury comforts that are unlimited and constantly evolving
2. B.Needs are goods provided exclusively by the public sector, while wants are manufactured only by private multinational corporations
3. C.Needs are products with zero opportunity cost, while wants are commodities subject to progressive taxation
4. D.Needs refer exclusively to financial capital, while wants refer to physical natural resources

2. Which four essential factors of production are combined in an economy to produce goods and services?

1. A.Money, Gold, Securities, and Foreign Exchange Reserves
2. B.Land, Labour, Capital, and Technology
3. C.Wages, Rent, Interest, and Dividends
4. D.Wholesale, Retail, Logistics, and E-commerce

3. How is 'opportunity cost' defined in economic decision-making when resources have alternative uses?

1. A.The total accounting monetary expenditure incurred during the construction of a factory
2. B.The annual rate of general price inflation recorded in an economy
3. C.The value of the next best alternative that is forgone or sacrificed when a particular choice is made
4. D.The minimum profit margin legally guaranteed to public sector enterprises