KSEEB Solutions For Class 8 Social Science Economics Chapter 1 Introduction To Economics

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KSEEB Solutions Class 8 Economics Chapter 1 Introduction To Economics Points To Remember

While the people using goods and services are called the ‘consumers’. The people engaged in the production of the goods and services are called the ‘producers’. These goods and services are made available to us at our place through transporters, traders, and shopkeepers, who are called the ‘distributors’. Economics may be described as the study of these economic activities of individuals or as a science that deals with the production, distribution, and use of goods and services.

Read and Learn More KSEEB Solutions for Class 8 Social Science

The classification of wants as more important or less is called ‘prioritizing’. “Economics is defined as the social science that examines how people choose to use limited or scarce resources in attempting to satisfy their unlimited wants.”“Economics is the study of wealth” – Adam Smith (1776) (Father of Economics) “Economics is the study of people in the ordinary business of life.” – Alfred Marshall (1890) The word “economics” comes from the Greek words “Oikos,” meaning “household,” and ‘ ‘nomos meaning “management”. 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. The organization of economic activities is called ‘economy’.

The study of Economics is not only enlightening but also profitable. – A. C. Pigou. Wants are the basis for all economic activities. The varied activities which we perform in order to earn money and wealth, for the satisfaction of our wants, are called economic activities. Production activities are those that produce goods and services. For example, agriculture, animal husbandry, fishing, mining, forest development, different kinds of industries, transport, communication, etc.

Kseeb Class 8 Economics Chapter 1 Summary And Notes

Goods and services are produced for consumption. Man satisfies his wants by buying goods and services. All these activities are known as consumption activities. Since Economics is a study of human economic activities, it is a very vast subject. Therefore, in order to study the different activities, it is divided into two broad branches called ‘Micro’ and ‘Macroeconomics. The word micro means very small and microeconomics implies a study of economics at a very small level. The word macro means ‘total’ or ‘large’.

It is said, “Micro Economics is like studying a single tree in the forest while, Macro Economics studies the whole forest; Micro Economics provides a worm’s eye view of the economy but Macro Economics provides a bird’s eye view of the economy”. Basic Economic Problems are What to produce? Flow to produce? For whom to produce?

KSEEB Solutions For Class 8 Social Science Economics Chapter 1 Introduction To Economics

Kseeb Solutions For Class 8 Economics Chapter 1 Pdf

Introduction To Economics Exercises

Fill in the blanks with suitable words:

  1. The word ‘Economics’ originates from the Greek root words “Oikos,” and “nomos,”
  2. The basic economic problems of every individual are scarcity and 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.

Answer the following in a sentence each:

Question 1. What is Economics?
Answer: “Economics is defined as the social science that examines how people choose to use limited or scarce resources in attempting to satisfy their unlimited wants.”

Question 2. Define scarcity.
Answer: Scarcity means something lesser than demand

Question 3. List the different economic activities.
Answer:

Production
Consumption
Exchange
Distribution

Class 8 Economics Introduction To Economics KSEEB Notes 

Question 4. When you buy a pen, which branch of Economics analyses your decision?
Answer: Microeconomics

Question 5. Define Micro Economics
Answer: The word micro means very small and microeconomics implies the study of economics at a very small level. Microeconomics is the study of decision-making to use resources by the smallest components of society, namely individuals, households, and business firms.

Answer the following in three or four sentences each:

Question 1. What are economic activities?
Answer: The varied activities which we perform in order to earn money and wealth, for the satisfaction of our wants, are called economic activities.

Question 2. Why do we need to study Economics?
Answer: Recognize the scarcity of resources against unlimited wants. Prioritizing the use of resources and identifying more important and less importation. Economize (save) on the use of resources. Search for more efficient ways of using the resources. Engage in economic activity to support a family as well as the country. Contribute to the government’s revenue and assist it in the discharge of its developmental and welfare programs. Understand socio-economic problems of the country like poverty, unemployment, inflation, etc., and try to provide solutions to the same; and Suggest better policies for the development of the country.

Kseeb Solutions Class 8 Economics Chapter 1 Notes

Question 3. Differentiate between micro and macroeconomics.
Answer: The word macro means ‘total’ or ‘large’. Macroeconomics studies the decisions taken by the government. The problem of unemployment, economic growth, development, etc. is covered under the study of Macro Economics. The word micro means ‘ small ’. Microeconomics implies a study of economics at a very small level. Microeconomics studies individual buying and selling.

Question 4. What are the basic economic problems?
Answer:
The basic economic problems are:

What to produce?
How to produce?
For whom to produce?

Question 5. What major economic decisions are taken by the government?
Answer: The major economic decisions taken by the government are collections of taxes, expenditure on public amenities and welfare activities, regulation of inflation, promotion of economic growth, etc. which affect the whole economy and fall in the purview of Macro Economics.

Introduction To Economics Additional Questions And Answers

Choose the correct alternative and Write the complete answer along with its alphabet in the sheet provided:

Question 1.“Economics is the study of wealth” this is stated by

  1. AdamSmith
  2. Alfred Marshall
  3. Lionel Robbins
  4. Paul A. Samuelson

Answer: 1. Adam Smith

Question 2. The Father of economics is

  1. Adam Smith
  2. Alfred Marshall
  3. Lionel Robbins
  4. Paul A. Samuelson

Answer: 1. AdamSmith

Kseeb Class 8 Social Science Economics Chapter 1 Mcq

Question 3. “Economics is the study of people in the ordinary business of life.” is stated by

  1. Alfred Marshall
  2. Adam Smith
  3. Lionel Robbins
  4. Paul A. Samuelson

Answer: 1. Alfred Marshall

KSEEB Economics Chapter 1 Class 8 Multiple Choice Questions 

Question 4. The study of Economics is not only enlightening but also profitable is stated by

  1. A. C. Pigou
  2. Adam Smith
  3. Lionel Robbins
  4. Paul A. Samuelson

Answer: 1. A. C. Pigou

Question 5. Which one among the following is NOT a factor of production?

  1. Land
  2. Labour
  3. Capital
  4. Banking

Answer: 4. Banking

Question 6. The word macro means

  1. Specific
  2. Total
  3. Small
  4. Hidden

Answer: 2. Total

Introduction To Economics Answer the following:

Question 1. What are Production activities?
Answer: Production activities are those that produce goods and services. For example, agriculture, animal husbandry, fishing, mining, forest development, different kinds of industries, transport, communication, etc.

Question 2. What are Consumption activities?
Answer: Goods and services are produced for consumption. Man satisfies his wants by buying goods and services. All these activities are known as consumption activities.

Question 3. What is Exchange?
Answer: Exchange is a marketing system to supply the produced goods to the consumers.

Question 4. Which are the activities of Exchange?
Answer: Activities of collection of goods, transportation, selling, and buying take place are the activities of Exchange.

Kseeb Class 8 Economics Chapter 1 Important Questions

Question 5. Which are the branches of economics?
Answer: Micro and Macroeconomics are the branches of economics.

Question 6. What is a firm?
Answer: A production or business unit is called a firm.

Kseeb Class 8 Economics Chapter 1 Introduction To Economics Question Answers

Question 7. Who are the distributors?
Answer: The goods and services are made available to us at our place through transporters, traders, and shopkeepers, who are called the ‘distributors.

Question 8. What is government?
Answer: The ‘government’ is responsible for maintaining law and order and providing some common basic facilities like good roads, electricity, and internal and external security. The government imposes ‘taxes’ for the goods and services it provides.

Question 9. What is economics according to Lionel Robbins?
Answer: “Economics is the science which studies human behavior as a relationship between given ends and scarce means which have alternative uses.” -Lionel Robbins.

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