Class 8 Introduction to Economics
I. Fill In The Blanks:
1. The word ‘Economics’ originates from the greek
root words Oikos & nomos.
2. The basic economic problems of every individual
is Scarcity & Choice.
3. The activities that generate income are Economic activities
4. Micro economics is the study of Small units.
5. Macro economics is the study of Large units
II. Answer The Following:
1. What is Economics?
Ans: The word “economics” comes from Greek words “oikos”, meaning “household”
and “nomos”, meaning “management”. Thus, economics refers to the art of
“household management” that involves using the available means to satisfy the
basic needs of the family as well as to prosper.
2. Define scarcity?
Ans: Scarcity is the basic problem and the central problem of economics. Scarce
means limited. When we have the scarcity of money to buy goods and services we
choose the most desirable wants or prioritize them in order of importance.
3. List the different economic activities?
Ans: Economic activities are classified into four kinds
a) Production b) Consumption
c) Exchange d) Distribution
4. When you buy a pen, which branch of economics
analysis your decision.
Ans: Microeconomics analysis of our decision.
5. Define microeconomics
Ans: Microeconomics is the study of decision making to use resources by the
smallest components of the society namely households and business terms.
III. Answer the following in three to four sentence each :
1. What are the economic activities?
Ans: We use our skills and labour to earn money and satisfy our wants by using
that money. The varied activities which we perform in order to earn money and
wealth, for the satisfaction of our wants, are called economic activities.
2. Why do we need to study economics?
Ans: a) We study of economics to recognize the scarcity of resources against
unlimited wants.
b) Economize on the use of resources and search for more efficient ways of using the resources.
c) Contribute to the government’s revenue and assist it in the discharge of its developmental and welfare programmes.
d) Understand the socio-economic problems of the country.
3. Differentiate between micro and macroeconomics?
|
S.NO |
Micro Economics |
Macro Economics |
|
1. |
Study of economics at a very small level |
The economy is a very large entity |
|
2. |
It is study about individual, households and business firms. |
It is study about welfare activities, regulation of inflation etc |
|
3. |
The subject matters are interaction of the buyers, sellers in market |
It is study about unemployment, economic growth, etc |
4. What are the basic economic problems
Ans: What to produce? The type and quantity of various goods produced
depends upon the resource availability on the one hand.
How to produce? Weather to use a technology that uses more labour or capital is to be decided by the society.
For whom to produce? Every society had to decide the distribution of scarce resources and goods and services among all individuals.
5. What are the major economic decisions are taken
by the government?
Ans: a) Recognize the scarcity of resources against unlimited wants.
b) Identifying more important and less important ones.
c) Economize (save) on the use of resources.
d) Engage in economic activity to support Development and welfare programs.
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