Topic 1: Scarcity, Choice and Opportunity Cost
1. Riya has ₹500 and must choose between buying a reference book and going to a movie. If she chooses the book, the movie represents her __________.
2. A student has enough money to buy several things but only two hours available for study. In this situation, __________ rather than money is the scarce resource.
3. A family chooses to spend its limited income on education instead of a new television. The decision reflects the economic problem of making a __________ among competing wants.
4. If a farmer uses a piece of land to grow wheat instead of vegetables, the value of the best alternative use of that land is the farmer’s __________.
5. Scarcity exists because resources are __________ in relation to people’s wants.
Topic 2: What Do Economists Do?
6. When economists study why the price of vegetables has increased, they may examine changes in both __________ and supply.
7. A government comparing two possible uses of a limited budget is using economic analysis to make a better __________.
8. If economists want to understand how consumers react when the price of a product increases, they study consumer __________.
9. Economic analysis can help policymakers evaluate the likely __________ and costs of different policies.
10. Economists use evidence and reasoning to study how scarce resources can be __________ among competing uses.
Topic 3: Production, Distribution and Consumption
11. A factory converting raw materials into finished goods is engaged in __________.
12. When a transport network moves products from producers to markets, it helps in the __________ of goods.
13. When a family uses electricity to meet its household needs, it is engaging in __________.
14. If farmers produce enough food but poor transportation prevents it from reaching consumers, the problem is related to __________ as well as production.
15. Production creates goods and services, distribution helps make them available, and __________ uses them to satisfy wants.
Topic 4: Economics and Policy-Making
16. When a government has a limited budget and must decide whether to spend more on schools or hospitals, it faces a problem of __________.
17. Before introducing a new economic policy, policymakers may study its expected benefits and __________.
18. If a government gives financial support to one sector, the resources used for that support may have an __________ cost because they could have been used elsewhere.
19. A government may study how consumers and producers are likely to __________ to a new policy before implementing it.
20. Economic reasoning helps policymakers make choices because public resources are __________ rather than unlimited.
Topic 5: Economics and Real-World Problems
21. If fuel prices rise and transportation becomes more expensive, the cost of transporting other goods may also __________.
22. When people who are willing and able to work cannot find jobs, the economy faces the problem of __________.
23. A sustained rise in the general level of prices is known as __________.
24. When an economy must decide how to use limited resources among competing needs, it faces the problem of resource __________.
25. Economics can help analyse real-world problems because it studies how people and societies make __________ under conditions of scarcity.
Topic 6: Three Central Problems of an Economy
26. When an economy decides whether to produce more food or more luxury goods, it is addressing the question of what to __________.
27. Choosing between a labour-intensive and a machine-intensive method is related to the question of how to __________.
28. The question of __________ to produce concerns how the goods and services produced by an economy are distributed among people.
29. The three central economic problems arise because resources are scarce while human __________ are numerous.
30. Even after deciding what to produce, an economy must still decide how to produce and __________ to produce for.
Topic 7: Planned Economy
31. In a planned economy, major economic decisions are significantly influenced by a central __________.
32. If a government decides that more resources should be devoted to essential goods, this represents economic __________.
33. In a planned system, resource allocation can be guided by government __________ and priorities.
34. A planned economy does not eliminate __________ because resources remain limited.
35. If a central authority decides which industries should receive more resources, the allocation decision is being made through __________ rather than being determined entirely by market forces.
Topic 8: Free-Market Economy
36. In a free-market economy, the interaction between buyers and sellers influences market __________.
37. If demand for a product increases while supply remains unchanged, the resulting price signal may encourage producers to __________ production.
38. In a market system, prices can provide information about changes in demand and __________.
39. A consumer deciding whether to buy a product based on its price is responding to a market __________.
40. In a free-market economy, many economic decisions are influenced by the interaction of __________ and sellers.
Topic 9: Mixed Economy
41. An economic system that combines market mechanisms with government involvement is called a __________ economy.
42. In a mixed economy, private businesses can operate while the __________ also participates in economic activities.
43. If the government provides public services while private firms produce other goods and services, the economy demonstrates a combination of __________ and public activity.
44. A mixed economy still faces the basic problem of __________ because resources are limited.
45. Government intervention and market forces can operate __________ in a mixed economic system.
Topic 10: Comparison of Economic Systems
46. In comparing economic systems, an important question is who makes major decisions about resource __________.
47. A planned economy relies more heavily on central planning, whereas a free-market economy relies more heavily on market __________.
48. A system combining market mechanisms and government intervention is known as a __________ economy.
49. No economic system can completely eliminate the problem of __________ because resources remain limited.
50. Comparing economic systems requires examining their decision-making methods as well as their possible __________ and limitations.
Topic 11: Welfare Economy
51. An economy that gives importance to people’s overall well-being is concerned with economic __________.
52. Access to education and healthcare can improve people’s __________ even when their income does not immediately increase.
53. A rise in production alone does not necessarily mean that people’s economic __________ has improved.
54. A welfare-oriented approach considers people’s basic needs and overall __________ rather than focusing only on output.
55. If economic policies improve access to essential services for disadvantaged groups, they may contribute to greater social __________.
Topic 12: Economic Growth vs. Economic Welfare
56. An increase in an economy’s production of goods and services over time is generally described as economic __________.
57. Economic __________ is broader than economic growth because it considers people’s overall well-being.
58. If national output increases but some people continue to lack basic services, economic growth may not have resulted in equal improvement in economic __________.
59. A country may experience economic growth without achieving the same level of improvement in people’s __________.
60. To assess welfare properly, policymakers may need to consider factors beyond national __________.
Topic 13: Social Safety Nets
61. Government or community support designed to protect vulnerable people from severe economic hardship is called a social __________ net.
62. If a household loses its main source of income and receives support to meet basic needs, the support acts as a social __________.
63. Social safety nets are particularly important for economically __________ sections of society.
64. During a sudden economic shock, a safety net can help reduce the impact of income __________.
65. Social safety nets aim to provide protection rather than completely eliminate people’s need for economic __________.
Topic 14: Importance of Social Safety Nets
66. A social safety net can help vulnerable households maintain a minimum level of __________ during difficult periods.
67. When a worker suddenly loses employment, a suitable safety-net programme may help protect the family’s basic __________.
68. Social safety nets can contribute to greater social __________ by reducing the effects of severe economic hardship.
69. For a safety-net programme to work effectively, assistance should reach the people who actually __________ it.
70. Social safety nets become particularly important when households face unexpected economic __________.
Topic 15: Application of Economics in Real Life
71. When a family decides how to divide its limited monthly income between food, education and savings, it is making an economic __________.
72. A student choosing between studying and attending a function faces an opportunity cost because __________ is also a scarce resource.
73. When a person compares the advantages and disadvantages of two alternatives before choosing one, the person is considering their expected __________ and costs.
74. Deciding whether to save money today or spend it on present consumption involves a trade-__________.
75. Economics is relevant to everyday life because individuals, families and governments must make choices when resources are __________.
Detailed Answer Key
Topic 1: Scarcity, Choice and Opportunity Cost
1. Opportunity cost
The movie is the next best alternative given up when Riya chooses the reference book.
2. Time
Even if money is available, the student has only a limited amount of time.
3. Choice
Scarcity forces people to choose among competing wants.
4. Opportunity cost
The best alternative use of the land that is sacrificed represents its opportunity cost.
5. Limited
Resources are limited in relation to the many wants people have.
Topic 2: What Do Economists Do?
6. Demand
Prices can be influenced by changes in demand and supply.
7. Decision
Economic analysis can help policymakers compare alternative choices.
8. Behaviour
Economists study how consumers respond to changes in prices and other conditions.
9. Benefits
Policies can have both benefits and costs.
10. Allocated
Economics studies how scarce resources can be allocated among competing uses.
Topic 3: Production, Distribution and Consumption
11. Production
Production involves creating goods and services.
12. Distribution
Transportation helps move goods from producers toward consumers and markets.
13. Consumption
Using a good or service to satisfy a want is consumption.
14. Distribution
Goods may be produced but still fail to reach consumers effectively because of distribution problems.
15. Consumption
Consumption is the use of goods and services to satisfy wants.
Topic 4: Economics and Policy-Making
16. Choice
A limited budget forces the government to choose among competing uses.
17. Costs
Policymakers consider both expected benefits and costs.
18. Opportunity
Resources used for one purpose cannot simultaneously be used for another; this creates an opportunity cost.
19. Respond
People and businesses may change their behaviour when policies change incentives or conditions.
20. Limited
Government resources are scarce, so choices are necessary.
Topic 5: Economics and Real-World Problems
21. Increase
Higher fuel costs can increase transportation costs.
22. Unemployment
People who are willing and able to work but cannot find jobs are unemployed.
23. Inflation
Inflation refers to a sustained rise in the general price level.
24. Allocation
Resource allocation concerns deciding how scarce resources should be used.
25. Choices
Economics examines choices made under conditions of scarcity.
Topic 6: Three Central Problems of an Economy
26. Produce
“What to produce” concerns the goods and services an economy should produce.
27. Produce
“How to produce” concerns the method or technique of production.
28. Whom
“For whom to produce” concerns the distribution of goods and services.
29. Wants
Human wants are numerous compared with available resources.
30. whom
An economy must decide for whom the goods and services should be produced.
Topic 7: Planned Economy
31. Authority
A central authority plays a major role in economic decision-making.
32. Planning
Deciding priorities for resource use is part of economic planning.
33. Plans
Government plans and priorities can guide resource allocation.
34. Scarcity
Planning does not make resources unlimited.
35. Planning
The central authority allocates resources through planned decisions.
Topic 8: Free-Market Economy
36. Prices
The interaction of buyers and sellers influences market prices.
37. Increase
Higher demand can create incentives for producers to increase supply.
38. Supply
Prices can communicate information about demand and supply conditions.
39. Signal
Price can act as a signal to consumers and producers.
40. Buyers
Market decisions are influenced by the interaction of buyers and sellers.
Topic 9: Mixed Economy
41. Mixed
A mixed economy combines market mechanisms with government involvement.
42. Government
The government can participate in economic activities alongside private businesses.
43. Private
Private economic activity can coexist with government/public activity.
44. Scarcity
Limited resources continue to create economic choices.
45. Together
Market forces and government intervention can coexist in a mixed economy.
Topic 10: Comparison of Economic Systems
46. Allocation
Different systems use different mechanisms to allocate resources.
47. Forces
Free-market systems rely heavily on market forces.
48. Mixed
A mixed economy combines market mechanisms and government intervention.
49. Scarcity
All economic systems must deal with limited resources.
50. Advantages
A comparison should consider both advantages and limitations.
Topic 11: Welfare Economy
51. Welfare
Economic welfare focuses on people’s broader well-being.
52. Welfare
Education and healthcare can improve well-being even without an immediate increase in income.
53. Welfare
Higher production alone does not necessarily guarantee improved welfare.
54. Well-being
Welfare-oriented analysis considers broader living conditions.
55. Welfare
Improved access to essential services can contribute to social welfare.
Topic 12: Economic Growth vs. Economic Welfare
56. Growth
Economic growth refers broadly to an increase in economic production or income over time.
57. Welfare
Welfare includes broader aspects of people’s well-being.
58. Welfare
Growth may occur without equally improving people’s welfare.
59. Well-being
Growth and people’s overall well-being are related but not identical.
60. Output
Welfare assessment may need to consider factors beyond national output.
Topic 13: Social Safety Nets
61. Safety
The term is “social safety net.”
62. Safety
Support that protects vulnerable households from hardship can act as a safety net.
63. Vulnerable
Safety nets are particularly relevant to vulnerable groups.
64. Loss
Safety nets can reduce the impact of sudden income loss.
65. Decisions
Support does not remove the need for people to make economic decisions.
Topic 14: Importance of Social Safety Nets
66. Living
Safety nets can help maintain a minimum level of living during hardship.
67. Needs
Support can help households continue meeting basic needs.
68. Stability
Safety nets can contribute to social stability.
69. Need
Effective programmes should reach people who actually need assistance.
70. Shocks
Unexpected economic shocks can create serious difficulties for households.
Topic 15: Application of Economics in Real Life
71. Decision
Dividing limited income among competing uses requires an economic decision.
72. Time
Time is scarce, so choosing one activity means giving up another.
73. Benefits
Comparing expected benefits and costs helps people evaluate alternatives.
74. Off
A trade-off occurs when choosing one option requires giving up another.
75. Scarce
Economic choices arise because resources are scarce relative to wants.
Final Tabular Answer Key
| Q. | Answer | Q. | Answer | Q. | Answer |
| 1 | Opportunity cost | 26 | Produce | 51 | Welfare |
| 2 | Time | 27 | Produce | 52 | Welfare |
| 3 | Choice | 28 | Whom | 53 | Welfare |
| 4 | Opportunity cost | 29 | Wants | 54 | Well-being |
| 5 | Limited | 30 | Whom | 55 | Welfare |
| 6 | Demand | 31 | Authority | 56 | Growth |
| 7 | Decision | 32 | Planning | 57 | Welfare |
| 8 | Behaviour | 33 | Plans | 58 | Welfare |
| 9 | Benefits | 34 | Scarcity | 59 | Well-being |
| 10 | Allocated | 35 | Planning | 60 | Output |
| 11 | Production | 36 | Prices | 61 | Safety |
| 12 | Distribution | 37 | Increase | 62 | Safety |
| 13 | Consumption | 38 | Supply | 63 | Vulnerable |
| 14 | Distribution | 39 | Signal | 64 | Loss |
| 15 | Consumption | 40 | Buyers | 65 | Decisions |
| 16 | Choice | 41 | Mixed | 66 | Living |
| 17 | Costs | 42 | Government | 67 | Needs |
| 18 | Opportunity | 43 | Private | 68 | Stability |
| 19 | Respond | 44 | Scarcity | 69 | Need |
| 20 | Limited | 45 | Together | 70 | Shocks |
| 21 | Increase | 46 | Allocation | 71 | Decision |
| 22 | Unemployment | 47 | Forces | 72 | Time |
| 23 | Inflation | 48 | Mixed | 73 | Benefits |
| 24 | Allocation | 49 | Scarcity | 74 | Off |
| 25 | Choices | 50 | Advantages | 75 | Scarce |