Assertion (A): Both private and public institutions exist in the education and health service markets in India.
Reason (R): Expenditures on education and health make a substantial long-term impact and cannot be easily reversed.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Both (A) and (R) are true but (R) is not the correct explanation of (A).
Both statements are true. R is the reason for government intervention; it does not explain why private and public institutions exist side by side.
Assertion (A): Both private and public institutions exist in the education and health service markets in India. — True. Private schools and hospitals work side by side with government schools and hospitals.
Reason (R): Expenditures on education and health make a substantial long-term impact and cannot be easily reversed. — True. If a child is put in a poor school or health centre, much damage is done before the decision can be changed.
Why R does not explain A?
R shows why the government must step in and watch over these services. It says nothing about why both kinds of institutions are found in these markets.
The real reason for A is that education and health care create both private and social benefits. The private benefit makes people willing to pay, so private providers come in. The social benefit reaches society as a whole, so public institutions also provide these services.
NCERT (2026-27): “4.5 State of Human Capital Formation in India … Before we take up the analysis of the education sector in India, we will look into the need for government intervention in education and health sectors. We do understand that education and health care services create both private and social benefits and this is the reason for the existence of both private and public institutions in the education and health service markets. Expenditures on education and health make substantial long-term impact and they cannot be easily reversed; hence, government intervention is essential.” |