Geography Notes Chapter 8 International Date Line Class 9 Maharashtra Board

Notes For All Chapters – Geography Class 9th

What is Economics?

• Economics is about managing money, time, and resources to meet our needs.
• It started from the Greek word “oikonomia,” which means “family management.”
• Economics studies how people use limited resources to fulfill their unlimited wants.

Why Economics Matters

• At home, we plan our income and spending (like the table below).
• Similarly, villages, cities, states, and countries manage their money and resources.
• Economics helps us understand how to use things wisely and make life better.

Example: Monthly Budget

Imagine your income is ₹20,000, but your spending is ₹22,550. You need to cut costs to balance it. Here’s an example table:

• Lesson: We reduce spending on fun (recreation, tourism) and daily items to fit our income.

Definition of Economics

• Lionel Robbins said: “Economics is a science that studies how people choose between limited resources and unlimited needs.”
• It’s about making smart choices with what we have.

What is an Economy?

• An economy is how a place (village, city, or country) produces, shares, and uses goods and services.
• Example: Farming in a village or factories in a city are part of the economy.

Types of Economies

There are three main types of economies in the world:

Capitalistic Economy

• Private people own businesses and factories.
• Goal: Make as much profit as possible.

Examples: USA, Germany, Japan.

Socialistic Economy

• The government owns everything and controls production.
• Goal: Help everyone in society (social welfare).

Examples: China, Russia.

Mixed Economy

• Both private people and the government run businesses.
• Goal: Balance profit and welfare for all.

Examples: India, Sweden, UK.

Factors Affecting an Economy

• Income and Spending: How much money comes in and goes out.
• Resources: Land, labor, and money available to use.
• Needs: What people want (food, clothes, etc.).
• Economics helps manage all these things.

Fun Fact

• Adam Smith, called the “Father of Economics,” wrote Wealth of Nations in 1776.
• He said economics is about creating and managing wealth.

Globalisation of Economy

• Globalisation means connecting a country’s economy to the world.
• It allows free trade, where goods, money, and services move across borders without rules stopping them.
• Example: Buying phones from China or selling Indian spices to the USA.

Functions of an Economy

Every economy does these jobs:

1. Decide what to produce and how much (e.g., rice or cars).
2. Keep production costs low.
3. Share money fairly among people.
4. Plan for future needs (like saving for schools or hospitals).
5. Decide who gets the goods (rich, poor, or everyone).