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Unit notes and practice questions

Grade 9 Economics unit 1: Introducing Economics

Everything here is for unit 1 of the Grade 9 Economics textbook: what the chapter covers, the short notes, practice questions with their answers, and the lesson video where one exists.

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4
Cards
10
Practice questions on unit 1
1–12
The textbook pages for unit 1

What unit 1 covers

  1. 1.Meaning of Economics
  2. 2.Branches of Economics
  3. 3.Methods and Approaches of Studying Economics
  4. 4.Decision Making Units

Short notes for unit 1

The cards filed under this chapter on the Grade 9 Economics page. Open one at a time.

Decision Making UnitPrimary RoleIncome Source
HouseholdsOwn factors of production and consume goodsRent, wages, interest, profit
Business FirmsHire factor services and produce commoditiesRevenue from sales of goods and services
GovernmentProvide public services and regulateDirect and indirect taxes

When you use it

Use when identifying the three basic economic agents, their roles, and their income mechanisms.

Watch out

Government enterprises that produce market goods are classified under business firms, not under general government.

Drafted from Grade 9 Economics, pages 1-12, then checked twice before it went up

When you use it

Use when determining the logical reasoning method applied to formulate economic theories.

Watch out

Deductive reasoning moves from general principles to specific facts. Inductive reasoning moves from specific observations to general principles.

Drafted from Grade 9 Economics, pages 1-12, then checked twice before it went up

FeatureMicroeconomicsMacroeconomics
ScopeIndividual units (households, firms)Economy as a whole (aggregates)
Central problemPrice determination and resource allocationLevel of income and employment
Main toolsDemand and supply of particular goodsAggregate demand and aggregate supply
ExamplesPrice of teff, individual incomeGDP of Ethiopia, general price level

When you use it

Use when identifying the scope, analytical tools, or core problem of an economic scenario.

Watch out

Microeconomics studies individual markets and price determination, while macroeconomics examines national aggregates and full employment.

Drafted from Grade 9 Economics, pages 1-12, then checked twice before it went up

When you use it

Use when distinguishing factual descriptions from opinion-based or value-laden economic claims.

Watch out

A positive statement is testable against facts even if it is factually incorrect. Normative statements express value judgments using words like should or ought to and cannot be verified by data.

Drafted from Grade 9 Economics, pages 1-12, then checked twice before it went up

Practice questions on unit 1

10 multiple-choice questions written against this chapter, each with its answer and the reason. Try one before you open the answer.

Question 1

The word economics comes from the ancient Greek word oikonomia. What does oikonomia mean?

  1. A.The management of a family or a household
  2. B.The creation of paper money
  3. C.The rule of a government over trade
  4. D.The collection of taxes from businesses
Show the answer and why

Answer: A The management of a family or a household

Why

The textbook states that economics is derived from the ancient Greek word oikonomia, which means the management of a family or a household.

Question 2

According to the textbook, what is the main objective of economics?

  1. A.To eliminate all spending by households
  2. B.To stop the growth of human needs completely
  3. C.To efficiently allocate scarce resources to satisfy unlimited human needs
  4. D.To make sure that all goods in a country have equal prices
Show the answer and why

Answer: C To efficiently allocate scarce resources to satisfy unlimited human needs

Why

Economics studies how to efficiently allocate scarce productive resources so as to attain the maximum fulfillment of unlimited human needs.

Question 3

Which of the following topics is studied under microeconomics?

  1. A.The general price level in Ethiopia
  2. B.The national income of Ethiopia
  3. C.The market price of teff in a local market
  4. D.The total employment level across the whole country
Show the answer and why

Answer: C The market price of teff in a local market

Why

Microeconomics focuses on individual decision-making units and the prices of particular commodities, such as the price of teff or oranges.

Question 4

Which of the following is a positive economic statement?

  1. A.The government should introduce school feeding programs in all schools.
  2. B.The current inflation rate in Ethiopia is 12 percent.
  3. C.Income taxes ought to be reduced for low-income workers.
  4. D.Medical care should be completely free for every citizen.
Show the answer and why

Answer: B The current inflation rate in Ethiopia is 12 percent.

Why

A positive statement deals with real facts and describes the world as it is (answering 'what is'). Statements using 'should' or 'ought to' are normative statements based on value judgments.

Question 5

Why is economics considered an art?

  1. A.Because it uses paintings to communicate economic data
  2. B.Because it deals only with personal opinions and feelings
  3. C.Because it provides practical methods and procedures to solve economic problems
  4. D.Because it does not rely on any facts or logical rules
Show the answer and why

Answer: C Because it provides practical methods and procedures to solve economic problems

Why

An art is a technique or way of achieving something. Economics is considered an art because it sets procedures and provides principles to solve practical problems such as unemployment, poverty, and inflation.

Question 6

What is the central problem of macroeconomics?

  1. A.Price determination of a single product
  2. B.Determination of the level of national income and employment
  3. C.How a single consumer chooses what to buy
  4. D.How an individual firm minimizes its production costs
Show the answer and why

Answer: B Determination of the level of national income and employment

Why

While microeconomics deals with the allocation of resources and individual price determination, macroeconomics is concerned with broad aggregates, especially the level of national income and full employment of resources.

Question 7

An economist reasons from general principles to arrive at a conclusion about a specific fact. Which method of logical reasoning is being used?

  1. A.The inductive method
  2. B.The deductive method
  3. C.The normative method
  4. D.The experimental method
Show the answer and why

Answer: B The deductive method

Why

The deductive method proceeds from general to particular. It starts from a general principle and reasons toward a specific conclusion.

Question 8

In an economy, what is the main economic role of households?

  1. A.They are the chief owners of the factors of production.
  2. B.They are the sole producers of public judicial services.
  3. C.They collect compulsory taxes from business firms.
  4. D.They decide the national gross domestic product.
Show the answer and why

Answer: A They are the chief owners of the factors of production.

Why

Households are the chief owners of the factors of production (land, labour, capital, and entrepreneurship) and sell these factor services to producers.

Question 9

A researcher observes that grain prices drop during harvest time across several Ethiopian towns. From these observations, the researcher concludes: "Keeping other factors constant, an increase in supply leads to a fall in prices." Which method was used?

  1. A.Deductive method
  2. B.Normative method
  3. C.Inductive method
  4. D.Value judgment
Show the answer and why

Answer: C Inductive method

Why

The inductive method reasons from the particular to the general (part to whole) by collecting data and observations to establish a general principle or hypothesis.

Question 10

Why can disagreements on normative economic statements NOT be settled simply by looking at facts and statistics?

  1. A.Because normative statements are based on value judgments about what is good or bad.
  2. B.Because economists do not collect data on the economy.
  3. C.Because normative economics only studies ancient history.
  4. D.Because positive economics has already proven them false.
Show the answer and why

Answer: A Because normative statements are based on value judgments about what is good or bad.

Why

Normative statements involve value judgments (opinions about what ought to be). Because they are not purely factual, they cannot be proved or disproved by facts alone, and disagreements are often resolved through voting.

The app holds 12 questions on this unit, marked as you go. These are the first 10.

The textbook pages for unit 1

Unit 1 runs from page 1 to page 12 of the Ministry of Education edition.

Ministry of Education edition, English, 130 pages

Download the PDF

All Grade 9 Economics short notes

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