Introduction to Economics class IX

As per the new text book
Class IX, Geography and Economics
NCERT

1. GEOGRAPHY AND ECONOMICS
STD IX
NCERT
BY –Anvesha Kotibhaskar,
Dr. K. B. HedgewarVidyamandir,
Sankhali Goa.

2. When you buy things or do things which make you happy,
you are satisfying your want or need.
Every individual in life always wants to be happy, which
he/she expresses by satisfying various needs and wants.

3. Needis something that one should always have, something
without which one cannot live.
EG. :-Food, Clothing And Shelter

4. Want is a good or service that is not essential for living.
We may desire or wish to have them to satisfy ourselves.
EG. :-big bungalow, designer clothes, accessories, cars etc.

5. We satisfy our needs and wants from various things.
These things are called Goods and Services.

6. GOODS are items that are tangible, which we can
touch and hold, such as books, bat, car etc.
GOODS

7. CLASSIFICATION
OF
GOODS
Consumer
Goods
Capital goods
or Producer
goods
Private
goods
Public goods or
Social goods

8. Consumer Goods
Goods which are directly used for final consumption purpose.
For EG. : Food, Clothes etc.

9. Capital goods or Producer goods
Goods which are used not for direct consumption but for
producing other consumer goods. Such goods are also called
as Intermediate goods.
For EG. Machines and Tools etc.

10. Private goods
These goods are sold to the public by private firms and
companies. They gain a profit from their sale and
consumers have to pay a price for it.
For EG. : Car, Book, Pen etc.

11. Public goods or Social goods
These goods are offered to the public by the Government
free of cost. They are enjoyed by all sectors of the society.
For EG. : Public Park, Infrastructure etc.

12. SERVICES
Services are actions that are performed for someone else. They
are intangible in nature which cannot be touched or seen.
For E.g. : medical check-ups, food delivery, car repair, teaching
etc.

13. To buy the things which satisfy our needs and wants, we
need to earn money.
To earn an income we need to perform various Human
Activities.
HUMAN
ACTIVITIES
ECONOMIC
ACTIVITIES
NON
ECONOMIC
ACTIVITIES

14. ECONOMIC ACTIVITIES
Economic activities are those which are undertaken with an
intention to earn an income by rendering services to others.
FOR EG.: -Teacher teaching in school.

15. NON-ECONOMIC ACTIVITIES
Non-Economic activities are those which are not undertaken
with an intention to earn income but out of love, respect,
charity, etc.
FOR EG:-Mother teaching her child at home.

16. The term economics has its origin from two Greek words
namely, ‘Oikos’ which means Household and ‘Nomos’ which
means management.
Management of house affairs.
How people earn income and how they spend them on their
necessities, comforts and luxuries.

17. Definitions of Economics
Wealth
1776
Welfare
1890
Scarcity
1932
Growth
1948
Modern
2011

18. Wealth Definition -Pro Adam Smith (Father of Economics)
“Economics is a science which inquires into the nature and
cause of wealth of nations."

19. Welfare Definition -Prof Alfred Marshall
“Economics is a study of mankind in the ordinary business
of life. It examines that part of individual and social action
which is most closely connected with the attainment and
with the use of material requisites of well being”.

20. Scarcity Definition -Prof. LionellRobbins
“Economics is a science which studies human behaviour as
a relationship between ends and scarce means which have
alternative uses."

21. Growth Definition -Prof. P. A. Samuelson
“Economics is a social science concerned with the way society
chooses to employ its resources, which have alternative uses,
to produce goods and services for present and future
consumption”.

22. Modern Definition -Prof. A. C. Dhas
“Economics is the study of choice making by individuals,
institutions, societies, nations and globe under conditions of
scarcity and surplus toward maximising benefits satisfying
their unlimited needs at present and future”.

23. SCARCITY AND CHOICE
Human 'Wants' are unlimited, but the resources to satisfy those needs
are limited or Meansthrough which we can satisfy our need is scarce.
It is not possible to produce all those goods and services which are
needed in an economy.
So, we need to make a choice between unlimited want and limited
resources. This is known as an Economic problem. (scarcity of resources
or means)
Economic Problem means the problem of making a choice between
unlimited wants and limited means due to scarcity of resources.

24. HOW TO SOLVE ECONOMIC PROBLEM?
Every economy, irrespective of its nature, has to solve these
economic problems taking right decisions regarding use of
scarce resources to produce those goods which can bring
maximum satisfaction to people.

25. KEY CONCEPTS OF ECONOMICS
1.Consumer :An individual who buys various goods and services to satisfy his or
her wants.
2. Consumption:An act of a consumer which is concerned with the use
of various goods and services to satisfy wants.
3. Producer:An individual who is involved with the activity of
producing goods as a farmer or a manufacturer.
4. Production:An act of a producer to produce various goods and
services, which is concerned with creating utility to satisfy consumer
wants.
5. Utility :The capacity of a commodity to satisfy human wants.

26. 6. Exchange : An act of selling and buying goods and services.
7. Factors of production : The term used for the resources of society
which are used in the process of Production like Land, Labour, Capital
and Entrepreneurship.
8. Factor Incomes : Incomes accruing to the factors of production in
terms of Rent, Wage, Interest and Profit.
9. Investment: The purchase of goods that are not consumed today but
are used in the future to create wealth.
10. Savings : Excess of income over the Expenditure.

27. 11. Micro Economics : It is one of the main branch of Economics
which studies the economic activities of individual units. (eg.: Study
of demand theory, Production theory, Consumer behaviour etc.)
12. Macro economics : It is the other main branch of Economics
which is the study of aggregate at the level of Economy as a whole.
eg. Study of national income, Employment, General price level etc.

28. Do you know??
Chanakya (283 BC) also known as Kautilyais considered as
the pioneer in the field of Economics. His book 'Arthashastra'
is a comprehensive manual in Sanskrit which includes politics,
law, civil and criminal court systems, ethics economics,
marketing and trading etc.