Class 9 Introduction to Economics Mock Test (ICSE)

Topics in Introduction to Economics

• Definitions of economics by Adam Smith, Robbins, Keynes and Samuelson
• Micro and macro economics
• Economic and non-economic activities
• Basic economic terms: goods, utility, value, price, wealth
• Economic entities: households, firms, government

Introduction to Economics practice questions with answers

1. Q1Multiple choice·1 mark
   Which of the following is classified as a non-economic activity?

   1. (a)A person cooking food for their own family at home
   2. (b)A doctor treating patients in a hospital for fees
   3. (c)A lawyer fighting a case in court for remuneration
   4. (d)A teacher teaching students in a school for a salary
   Show answer and step marks

   1. Correct option: (a) A person cooking food for their own family at home+1

   Answer: (a)
2. Q2Multiple choice·1 mark
   In economics, what is referred to as the capacity of a commodity to satisfy human wants?

   1. (a)Value
   2. (b)Wealth
   3. (c)Utility
   4. (d)Price
   Show answer and step marks

   1. Correct option: (c) Utility+1

   Answer: (c)
3. Q3Multiple choice·1 mark
   Which economist is associated with the modern growth-oriented definition of economics, emphasizing how society chooses to employ scarce productive resources to produce various commodities over time?

   1. (a)Adam Smith
   2. (b)Paul A. Samuelson
   3. (c)Alfred Marshall
   4. (d)Lionel Robbins
   Show answer and step marks

   1. Correct option: (b) Paul A. Samuelson+1

   Answer: (b)
4. Q4Short answer·2 marks
   State the primary economic roles played by households and firms respectively in an economy.
   Show answer and step marks

   1. Households act as consumers of goods and services.+0.5
   2. Households own and supply the factors of production (land, labour, capital, enterprise).+0.5
   3. Firms act as producers of goods and services.+0.5
   4. Firms hire the factors of production supplied by households and pay them rent, wages, interest and profit.+0.5

   Answer: Households are consumers and factor owners; firms are producers and employers of factors.
5. Q5Long answer·4 marks
   Answer the following questions regarding the definitions of economics: (a) State Adam Smith's wealth-focused definition of economics and mention one major criticism against it. (b) State Lionel Robbins' scarcity-based definition of economics and explain its primary focus.
   Show answer and step marks

   1. Stating Adam Smith's definition: Economics is the science that inquires into the nature and causes of the wealth of nations.+1
   2. Stating one criticism of Adam Smith's definition: It gave undue importance to material wealth and completely ignored human welfare.+1
   3. Stating Lionel Robbins' definition: Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.+1
   4. Explaining primary focus: It focuses on the problem of scarcity of resources, unlimited human wants, and the resultant need for making choices.+1

   Answer: (a) Adam Smith: economics is the science that inquires into the nature and causes of the wealth of nations. Criticism: it gave undue importance to material wealth and ignored human welfare. (b) Robbins: economics studies human behaviour as a relationship between ends and scarce means which have alternative uses. Its focus is scarcity of resources against unlimited wants, which forces choice.
6. Q6Long answer·4 marks
   (a) State Adam Smith's definition of economics and identify its core focus. (b) State Lionel Robbins' definition of economics and explain its emphasis on scarcity and alternative uses of resources.
   Show answer and step marks

   1. Stating Adam Smith's definition: Economics is defined as a science of wealth that studies the nature and causes of the wealth of nations.+1
   2. Identifying Smith's core focus: Emphasis on the acquisition of material wealth as the primary driver of human welfare.+1
   3. Stating Lionel Robbins' definition: Economics is a science which studies human behavior as a relationship between unlimited ends and scarce means which have alternative uses.+1
   4. Explaining Robbins' emphasis: Highlights the fundamental economic problem of choice arising from resource scarcity.+1

   Answer: (a) Adam Smith: economics is a science of wealth that inquires into the nature and causes of the wealth of nations; its core focus is the production and acquisition of material wealth. (b) Robbins: economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses; since wants are unlimited and means scarce and usable in different ways, people must choose how to allocate them.

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