SEBA Class 9 Social Science Economics Chapter 1 Basic Concepts of Economics MCQs (2026–27) – Assam Eduverse
By Jamal Ali (M.Sc Physics, 5+ years teaching experience) · Reviewed by Editorial Board
Economics helps us understand how individuals, businesses, and governments make decisions about the efficient use of limited resources to satisfy unlimited human wants. These SEBA Class 9 Social Science Economics Chapter 1 Basic Concepts of Economics MCQs are prepared according to the latest ASSEB examination pattern and include assertion-reason, match the following, multiple-correct-answer, statement-based, and concept-based objective questions with detailed explanations. A downloadable PDF is also available to help students revise quickly and strengthen conceptual understanding before school, half-yearly, and annual examinations.
For a deeper understanding of every topic, first study our SEBA Class 9 Economics Chapter 1 Solutions. Students can also prepare more effectively by exploring the SEBA Class 9 Study Materials and practising additional objective questions from our SEBA Class 9 MCQs collection for comprehensive revision across different subjects.
SEBA Class 9 Economics Chapter 1 Basic Concepts of Economics Important MCQs – Assam Board 2026–27 Exam Practice
Table of Contents
Before You Start
Practice SEBA Class 9 Social Science MCQs based on the latest syllabus. Answer chapter-wise questions, get instant results with detailed explanations, and improve your exam preparation for History, Geography, Political Science, and Economics.
Alfred Marshall gave his definition of economics in the year:
✅ Correct Answer
Correct Answer: B. 1890
Concept Explanation
Milestone in welfare economics:
- Marshall's Work: Alfred Marshall published his seminal textbook, Principles of Economics, in 1890, shifting the definition of the discipline from mere wealth accumulation to the study of human material welfare.
According to Adam Smith, economics is the science of:
✅ Correct Answer
Correct Answer: B. Wealth
Concept Explanation
Classical view of economics:
- Wealth Definition: Adam Smith, in his 1776 book The Wealth of Nations, defined economics primarily as a science focused on the nature and causes of the wealth of nations.
The problem of scarcity arises because:
✅ Correct Answer
Correct Answer: C. Resources have alternative uses
Concept Explanation
Economic scarcity mechanics:
- Alternative Uses: Because productive resources (land, labor, capital) are limited in supply and possess multiple alternative uses, societies face the fundamental economic problem of choosing how to allocate them efficiently.
Who is known as the Father of Economics?
✅ Correct Answer
Correct Answer: C. Adam Smith
Concept Explanation
Historical designation:
- Adam Smith: Widely recognized as the Father of Modern Economics for establishing political economy as a distinct academic discipline through his classical theories.
The word ‘Economics’ has been derived from which Greek words?
✅ Correct Answer
Correct Answer: B. Oikos and Nomos
Concept Explanation
Etymological roots:
- Greek Origin: The term originates from Oikos (meaning house or household) and Nomos (meaning management or custom), translating literally to household management.
Lionel Robbins defined economics as a science which studies human behaviour as a relationship between:
✅ Correct Answer
Correct Answer: C. Ends and scarce means
Concept Explanation
Scarcity definition of economics:
- Robbins' Definition: Lionel Robbins framed economics around the allocation of scarce resources (means) to satisfy unlimited human desires (ends).
According to Robbins, human wants are:
✅ Correct Answer
Correct Answer: C. Unlimited
Concept Explanation
Nature of human desires:
- Endless Wants: Human desires are insatiable and multiply continuously, driving the perpetual study of economic choice and resource management.
Samuelson and Nordhaus gave the definition of economics based on:
✅ Correct Answer
Correct Answer: C. Scarcity and choice
Concept Explanation
Modern economic perspective:
- Modern Approach: Samuelson expanded the definition to incorporate dynamic growth, focusing heavily on how societies choose to use scarce productive resources.
Which of the following is not included in the scope of economics?
✅ Correct Answer
Correct Answer: C. Religious activities
Concept Explanation
Scope boundaries:
- Exclusion: Economics deals strictly with material human behavior, resource allocation, production, exchange, and consumption, excluding non-economic spiritual or religious acts.
Creation of useful commodities is called:
✅ Correct Answer
Correct Answer: B. Production
Concept Explanation
Definition of production:
- Utility Creation: Production involves transforming raw materials and inputs into finished goods and services that possess utility to satisfy human wants.
The sharing of produced goods among consumers is called:
✅ Correct Answer
Correct Answer: C. Distribution
Concept Explanation
Factor and goods distribution:
- Macro Distribution: Refers to how the total national product is shared among factors of production (rent, wages, interest, profit) or consumers.
When goods are bought and sold between countries, it is known as:
✅ Correct Answer
Correct Answer: C. International trade
Concept Explanation
Cross-border commerce:
- Global Trade: International or foreign trade involves the exchange of goods, services, and capital across sovereign national boundaries.
The barter system was replaced mainly due to the invention of:
✅ Correct Answer
Correct Answer: C. Money
Concept Explanation
Evolution of exchange:
- Medium of Exchange: Money eliminated the cumbersome requirement of a "double coincidence of wants" inherent in direct barter systems.
The study of public revenue, public expenditure and public debt is called:
✅ Correct Answer
Correct Answer: B. Public finance
Concept Explanation
Government financial operations:
- Public Finance: Examines how governments manage taxation revenue, budget expenditures, and national borrowing obligations.
Economics which deals with environment and development is called:
✅ Correct Answer
Correct Answer: C. Environmental economics
Concept Explanation
Specialized economic sub-field:
- Environmental Focus: Addresses the economic impacts of environmental policies, sustainable growth, and resource preservation alongside development.
Goods which are free gifts of nature are called:
✅ Correct Answer
Correct Answer: C. Free goods
Concept Explanation
Classification of goods:
- Free Goods: Resources provided freely by nature in abundance (like air or sunshine) that do not require economic effort or price to obtain.
Goods used for further production are called:
✅ Correct Answer
Correct Answer: B. Capital goods
Concept Explanation
Producer goods:
- Capital Goods: Durable manufactured items (such as machinery, tools, and factory buildings) utilized in the creation of other goods and services rather than direct consumption.
Which of the following are included in the scope of economics?
- (i) Production
- (ii) Distribution
- (iii) Consumption
- (iv) Public finance
✅ Correct Answer
Correct Answer: D. i, ii, iii and iv
Concept Explanation
Scope of economic studies:
- Comprehensive Scope: Modern economics encompasses production, consumption, distribution, exchange, public finance, and welfare management. All listed options fall directly under economic study.
Assertion (A): Free goods have a price.
Reason (R): Their supply is limited compared to demand.
✅ Correct Answer
Correct Answer: D. A is false but R is true
Concept Explanation
Free goods vs. Economic goods:
- Assertion Analysis: Free goods (like air or sunlight) do not carry a price because they are abundant, making Assertion false.
- Reasoning Analysis: Reason is true because items whose supply is limited relative to demand are classified as economic goods, which command a price, not free goods.
The part of produced goods which is offered for sale in the market is called:
✅ Correct Answer
Correct Answer: B. Supply
Concept Explanation
Definition of market supply:
- Market Supply: Represents the specific quantity of a commodity that producers are willing and able to offer for sale at various given prices during a specific period.
Assertion (A): Economics deals with scarcity.
Reason (R): Human wants are unlimited but resources are limited.
✅ Correct Answer
Correct Answer: A. Both A and R are true and R is the correct explanation of A
Concept Explanation
Core economic problem:
- Assertion Analysis: Economics centers around scarcity and efficient choice-making (True).
- Reasoning Analysis: This scarcity problem exists precisely because human wants are endless while available productive resources are finite, directly explaining the assertion.
Examples of capital goods are:
- (i) Machines
- (ii) Tools
- (iii) Equipment
- (iv) Bread
✅ Correct Answer
Correct Answer: B. i, ii and iii
Concept Explanation
Producer goods identification:
- Analysis: Machines, tools, and equipment are durable producer assets used to manufacture other commodities (capital goods). Bread is a perishable consumer good meant for direct final consumption.
Assertion (A): Micro economics studies the aggregate economy.
Reason (R): Macro economics studies the economy as a whole.
✅ Correct Answer
Correct Answer: D. A is false but R is true
Concept Explanation
Micro vs. Macro economics:
- Assertion Analysis: Assertion is false because microeconomics studies individual economic units (like a single consumer or firm), not aggregates.
- Reasoning Analysis: Reason is true because macroeconomics focuses on the economy as a whole (aggregate output, inflation, national income).
The power of a good to satisfy human wants is called:
✅ Correct Answer
Correct Answer: B. Utility
Concept Explanation
Economic concept of utility:
- Utility: Measures the want-satisfying power or subjective satisfaction derived by a consumer from consuming a good or service.
Assertion (A): Adam Smith’s definition is called wealth definition.
Reason (R): He defined economics as the science of welfare.
✅ Correct Answer
Correct Answer: C. A is true but R is false
Concept Explanation
Classical definitions of economics:
- Assertion Analysis: Adam Smith's classical formulation is indeed known as the "wealth definition" (True).
- Reasoning Analysis: The reason is false because defining economics as a science of welfare was introduced later by neo-classical economists like Alfred Marshall, not Adam Smith.
Assertion (A): Capital helps in production.
Reason (R): Capital includes tools, machines and equipment.
✅ Correct Answer
Correct Answer: A. Both A and R are true and R is the correct explanation of A
Concept Explanation
Role of capital in production:
- Assertion Analysis: Capital acts as a primary active factor that enhances productive capacity (True).
- Reasoning Analysis: Capital consists of man-made producer goods like tools, machinery, and equipment, which directly explain how it facilitates and boosts industrial production.
Which economists gave definitions of economics?
- (i) Adam Smith
- (ii) Alfred Marshall
- (iii) Lionel Robbins
- (iv) Amartya Sen
✅ Correct Answer
Correct Answer: B. i, ii and iii
Concept Explanation
Prominent economists and definitions:
- Analysis: Adam Smith (wealth), Alfred Marshall (welfare), and Lionel Robbins (scarcity) are textbook figures famous for formulating formal definitions of economics. Amartya Sen contributed majorly to welfare economics and capability theory rather than a standalone textbook definition in this specific sequence.
The money value of a commodity is called:
✅ Correct Answer
Correct Answer: C. Price
Concept Explanation
Definition of price:
- Price: The monetary expression or value assigned to a unit of a good or service when exchanged in the market.
Assertion (A): Welfare economics is concerned with human welfare.
Reason (R): Welfare can be measured only in money.
✅ Correct Answer
Correct Answer: C. A is true but R is false
Concept Explanation
Evaluating welfare measurements:
- Assertion Analysis: Welfare economics evaluates how economic policies affect societal well-being and welfare (True).
- Reasoning Analysis: The reason is false because human welfare encompasses psychological, social, and non-monetary factors that cannot be measured *exclusively* in monetary terms.
According to Robbins’ definition, the main points are:
- (i) Unlimited wants
- (ii) Limited resources
- (iii) Alternative uses of resources
- (iv) Elimination of scarcity
✅ Correct Answer
Correct Answer: B. i, ii and iii
Concept Explanation
Core pillars of Robbins' scarcity definition:
- Analysis: Robbins' framework rests on unlimited wants, scarce/limited resources, and alternative resource uses. Scarcity is a permanent condition in economics, so it can never be completely "eliminated" (item iv).
Assertion (A): Demand means only desire for a commodity.
Reason (R): Desire must be supported by purchasing power to become demand.
✅ Correct Answer
Correct Answer: D. A is false but R is true
Concept Explanation
Difference between desire and demand:
- Assertion Analysis: Assertion is false because demand is much more than mere desire; it requires willingness and ability to pay.
- Reasoning Analysis: Reason is true because a desire only translates into economic "demand" when backed by adequate purchasing power and willingness to spend at a given price.
Assertion (A): Savings is the portion of income not used for consumption.
Reason (R): Savings is a good means of capital formation.
✅ Correct Answer
Correct Answer: B. Both A and R are true and R is the not the correct explanation of A
Concept Explanation
Savings and capital accumulation:
- Assertion Analysis: Savings equals disposable income minus current consumption expenditure (True).
- Reasoning Analysis: Accumulated savings channel into investment, leading to capital formation (True). However, being a means of capital formation does not explain the *definition* of what savings is, making R a true statement but not the direct explanation of A.
Assertion (A): National income is the money value of all goods and services produced in a country in a financial year.
Reason (R): Per capita income is calculated by dividing national income by population.
✅ Correct Answer
Correct Answer: B. Both A and R are true and R is not the correct explanation of A
Concept Explanation
National and per capita income metrics:
- Assertion Analysis: National income measures total annual aggregate output value (True).
- Reasoning Analysis: Per capita income formula divides total income by population (True). But the calculation of per capita income does not explain the underlying definition of national income itself.
Assertion (A): Macro economics studies individual units.
Reason (R): Micro economics studies individual consumers and firms.
✅ Correct Answer
Correct Answer: D. A is false but R is true
Concept Explanation
Distinguishing micro and macro economics:
- Assertion Analysis: Assertion is false because macroeconomics studies aggregates (entire economy), whereas microeconomics studies individual units.
- Reasoning Analysis: Reason is entirely true because microeconomics specifically examines individual consumer and business firm behavior.
Match the following:
| Column A | Column B |
|---|---|
| (a) Adam Smith | (1) Welfare definition |
| (b) Alfred Marshall | (2) Wealth definition |
| (c) Lionel Robbins | (3) Scarcity definition |
| (d) Samuelson & Nordhaus | (4) Modern definition |
✅ Correct Answer
Correct Answer: A. a-2, b-1, c-3, d-4
Concept Explanation
Evolution of economic definitions:
- a – 2 (Adam Smith): Pioneered the classical wealth-based definition.
- b – 1 (Alfred Marshall): Shifted focus to material human welfare.
- c – 3 (Lionel Robbins): Formulated the modern scarcity and choice framework.
- d – 4 (Samuelson & Nordhaus): Expanded into dynamic modern economic growth analysis.
Examples of free goods are:
- (i) Sunlight
- (ii) Air
- (iii) Wind
- (iv) Furniture
✅ Correct Answer
Correct Answer: B. i, ii and iii
Concept Explanation
Identifying free goods:
- Analysis: Sunlight, air, and wind are abundant natural gifts requiring no human effort or payment to acquire (free goods). Furniture is a manufactured commodity requiring human labor, capital, and raw materials, making it an economic good.
Match the following:
| Column A | Column B |
|---|---|
| (a) Production | (1) Buying and selling |
| (b) Distribution | (2) Sharing of goods |
| (c) Consumption | (3) Creation of goods |
| (d) Exchange | (4) Using goods |
✅ Correct Answer
Correct Answer: A. a-3, b-2, c-4, d-1
Concept Explanation
Core economic activities matching:
- a – 3: Production creates goods and utility.
- b – 2: Distribution shares output among factors/consumers.
- c – 4: Consumption utilizes goods to satisfy wants.
- d – 1: Exchange involves buying and selling in markets.
Match the following:
| Column A | Column B |
|---|---|
| (a) Free goods | (1) Used for further production |
| (b) Economic goods | (2) Free gifts of nature |
| (c) Capital goods | (3) Used for direct satisfaction |
| (d) Consumer goods | (4) Have price |
✅ Correct Answer
Correct Answer: A. a-2, b-4, c-1, d-3
Concept Explanation
Classification of economic goods:
- a – 2: Free goods are unpriced natural gifts.
- b – 4: Economic goods are scarce and carry a price.
- c – 1: Capital goods are used to produce other items.
- d – 3: Consumer goods satisfy human wants directly.
Welfare can be:
- (i) Economic welfare
- (ii) Non-economic welfare
- (iii) Only monetary welfare
- (iv) Only social welfare
✅ Correct Answer
Correct Answer: A. i and ii
Concept Explanation
Forms of human welfare:
- Analysis: Welfare encompasses both material economic well-being (measurable in money) and broader non-economic qualitative dimensions (peace, health, social harmony). Limiting welfare strictly to monetary terms is inaccurate.
Market in economics means:
- (i) A place only
- (ii) An arrangement of buying and selling
- (iii) Direct buying and selling
- (iv) Indirect buying and selling
✅ Correct Answer
Correct Answer: B. ii, iii and iv
Concept Explanation
Economic definition of a market:
- Analysis: In economics, a market is not restricted to a physical geographic location (item i is false). Instead, it represents an institutional arrangement for buyers and sellers to interact directly or indirectly through digital networks or agents.
Match the following:
| Column A | Column B |
|---|---|
| (a) Utility | (1) Money value of commodity |
| (b) Wealth | (2) Power to satisfy wants |
| (c) Welfare | (3) Well-being |
| (d) Price | (4) Possesses utility and scarcity |
✅ Correct Answer
Correct Answer: A. a-2, b-4, c-3, d-1
Concept Explanation
Economic term definitions:
- a – 2: Utility is want-satisfying power.
- b – 4: Wealth requires utility, scarcity, and transferability.
- c – 3: Welfare denotes human well-being.
- d – 1: Price represents monetary value.
Match the following:
| Column A | Column B |
|---|---|
| (a) Demand | (1) Portion of income not consumed |
| (b) Supply | (2) Desire backed by purchasing power |
| (c) Market | (3) Goods offered for sale |
| (d) Savings | (4) Arrangement of buying and selling |
✅ Correct Answer
Correct Answer: A. a-2, b-3, c-4, d-1
Concept Explanation
Market mechanics pairings:
- a – 2: Demand is desire backed by ability to pay.
- b – 3: Supply is goods offered for sale.
- c – 4: Market is an arrangement for exchange.
- d – 1: Savings is unconsumed income.
Match the following:
| Column A | Column B |
|---|---|
| (a) Capital | (1) Money value of goods and services |
| (b) Investment | (2) Appliances used in production |
| (c) National Income | (3) Income per person |
| (d) Per Capita Income | (4) Use of savings for production |
✅ Correct Answer
Correct Answer: A. a-2, b-4, c-1, d-3
Concept Explanation
Macroeconomic aggregates matching:
- a – 2: Capital consists of production tools.
- b – 4: Investment channels savings into productive assets.
- c – 1: National Income measures total annual production value.
- d – 3: Per Capita Income represents average income per citizen.
Match the following:
| Column A | Column B |
|---|---|
| (a) Micro economics | (1) Studies public revenue |
| (b) Macro economics | (2) Studies aggregate economy |
| (c) Public finance | (3) Studies individual units |
| (d) Welfare economics | (4) Studies human welfare |
✅ Correct Answer
Correct Answer: A. a-3, b-2, c-1, d-4
Concept Explanation
Branches of economics:
- a – 3: Microeconomics focuses on individual entities.
- b – 2: Macroeconomics evaluates the whole economy.
- c – 1: Public finance handles government budgets.
- d – 4: Welfare economics analyzes societal well-being.
Match the following:
| Column A | Column B |
|---|---|
| (a) Oikos | (1) Law |
| (b) Nomos | (2) Household |
| (c) Barter system | (3) Direct exchange |
| (d) Money | (4) Medium of exchange |
✅ Correct Answer
Correct Answer: A. a-2, b-1, c-3, d-4
Concept Explanation
Etymological and historical terms:
- a – 2: Oikos translates to household.
- b – 1: Nomos translates to law/management.
- c – 3: Barter is direct good-for-good trade.
- d – 4: Money serves as standard medium of exchange.
Match the following:
| Column A | Column B |
|---|---|
| (a) Finished goods | (1) Trade within country |
| (b) Intermediate goods | (2) Trade between countries |
| (c) Internal trade | (3) Goods ready for consumption |
| (d) International trade | (4) Used for further processing |
✅ Correct Answer
Correct Answer: A. a-3, b-4, c-1, d-2
Concept Explanation
Good types and trade categories:
- a – 3: Finished goods are ready for final consumption.
- b – 4: Intermediate goods undergo further processing.
- c – 1: Internal trade occurs within national borders.
- d – 2: International trade happens across borders.
Match the following:
| Column A | Column B |
|---|---|
| (a) Economic welfare | (1) Social and cultural welfare |
| (b) Non-economic welfare | (2) Efficient use of scarce resources |
| (c) Environment economics | (3) Monetary welfare |
| (d) Efficiency | (4) Study of environment and development |
✅ Correct Answer
Correct Answer: A. a-3, b-1, c-4, d-2
Concept Explanation
Advanced economic sub-concepts:
- a – 3: Economic welfare links directly to material wealth and monetary metrics.
- b – 1: Non-economic welfare covers social, cultural, and moral well-being.
- c – 4: Environmental economics studies sustainability and development.
- d – 2: Efficiency is achieved through optimal resource allocation.
Capital formation depends on:
- (i) Savings
- (ii) Investment
- (iii) Consumption
- (iv) Production
✅ Correct Answer
Correct Answer: A. i and ii
Concept Explanation
Drivers of capital formation:
- Analysis: Capital formation (increasing productive assets) relies primarily on generating savings and subsequently channeling those savings into productive investments. Consumption and production are broader economic activities rather than direct determinants of capital accumulation.
Economics of environment deals with:
- (i) Industrialisation
- (ii) Environmental imbalance
- (iii) Restoration of environmental equilibrium
- (iv) Religious reforms
✅ Correct Answer
Correct Answer: B. i, ii and iii
Concept Explanation
Environmental economics focus:
- Analysis: Environmental economics analyzes how industrial growth impacts ecosystems, assesses resulting imbalances, and studies strategies for restoring ecological equilibrium. Religious reforms fall outside economic scope.
Micro economics studies:
- (i) Individual consumer
- (ii) Individual firm
- (iii) Whole economy
- (iv) Individual producer
✅ Correct Answer
Correct Answer: C. i, ii and iv
Concept Explanation
Scope of microeconomics:
- Analysis: Microeconomics examines individual economic units such as consumers, firms, and individual producers/industries. Studying the whole economy (item iii) is the domain of macroeconomics.
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SEBA Class 9 Social Science Economics Chapter 1 Basic Concepts of Economics MCQs for the Latest ASSEB Exam Pattern
Economics is the study of how people, businesses, and governments use limited resources to satisfy unlimited human wants. The chapter Basic Concepts of Economics introduces students to the fundamental principles that form the foundation of economic studies. It explains why scarcity exists, how individuals make choices, and why every economic decision involves selecting one alternative over another. Understanding these concepts helps students relate economics to everyday life, where decisions about spending, saving, production, and consumption are made continuously.
The chapter also familiarises students with important terms such as human wants, scarcity, utility, goods and services, production, consumption, distribution, and economic activities. These concepts are closely connected, making it important to understand their relationships rather than memorising definitions individually. Students should clearly distinguish between economic and non-economic activities, different types of goods, and the basic functions performed in an economy. Since many examination questions test conceptual understanding, learning these fundamentals carefully will make it easier to answer both objective and descriptive questions with confidence.
To strengthen conceptual understanding, these SEBA Class 9 Social Science Economics Chapter 1 Basic Concepts of Economics MCQs are prepared according to the latest ASSEB examination pattern. The quiz includes assertion-reason questions, statement-based questions, match the following, multiple-correct-answer questions, and concept-based objective questions with detailed explanations. Every explanation is designed to help students understand the logic behind the correct answer instead of relying only on memorisation, making revision more effective and exam-oriented.
After completing this chapter, continue your preparation with our SEBA Class 9 Social Science Question Answers to improve descriptive writing and strengthen conceptual clarity. You can also practise additional chapters through our SEBA Class 9 Social Science Chapterwise Important MCQs collection and access more learning resources from the latest SEBA Class 9 Syllabus to ensure complete exam preparation.
The latest ASSEB examination pattern focuses on analytical thinking and conceptual learning rather than simple memorisation. Therefore, students should understand the meaning of every economic term, compare related concepts, solve objective questions regularly, and carefully review the explanations after each attempt. Combining textbook study with continuous MCQ practice will improve conceptual understanding, increase accuracy, and build the confidence required to perform well in school, half-yearly, and annual examinations.
Frequently Asked Questions – Basic Concepts of Economics MCQs
1. Which topics are most important in Basic Concepts of Economics for the ASSEB Class 9 examination?
Students should focus on scarcity, human wants, choice, utility, goods and services, production, consumption, distribution, economic activities, and the efficient use of resources, as these concepts are frequently tested in examinations.
2. Why is scarcity considered a basic concept in Economics?
Scarcity exists because human wants are unlimited while resources are limited. This makes it necessary to choose how available resources should be used efficiently, which is the central idea of Economics.
3. Does this MCQ quiz follow the latest ASSEB syllabus and examination pattern?
Yes. The MCQs are prepared according to the latest ASSEB syllabus and include different objective question formats with detailed explanations to strengthen conceptual understanding and examination readiness.
4. How can I prepare Basic Concepts of Economics more effectively?
Study each concept carefully, understand the relationship between scarcity, choice, and resources, revise important definitions, and practise MCQs with explanations regularly to improve both conceptual understanding and examination performance.