Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A): In a society, people obtain many of the goods and services they need by exchanging a part of what they produce.
Reason (R): Every individual wants a combination of many goods and services, not all of which are produced by her.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Both (A) and (R) are true and (R) is the correct explanation of (A).
Assertion (A): In a society, people obtain many of the goods and services they need by exchanging a part of what they produce. — True. The family farm, for example, gives part of its corn in exchange for clothing, housing and services.
Reason (R): Every individual wants a combination of many goods and services, not all of which are produced by her. — True. Each person produces only a few things but wants many.
Why R explains A?
A person makes only a few goods but needs many more. The only way to get the rest is to give a part of her own output for them. So R is the reason people exchange.
NCERT (2026-27): “1.1 A Simple Economy … A family farm may own a plot of land, some grains, farming implements, maybe a pair of bullocks and also the labour services of the family members. A weaver may have some yarn, some cotton and other instruments required for weaving cloth. The teacher in the local school has the skills required to impart education to the students. Some others in society may not have any resource excepting their own labour services. Each of these decision making units can produce some goods or services by using the resources that it has and use part of the produce to obtain the many other goods and services which it needs. For example, the family farm can produce corn, use part of the produce for consumption purposes and procure clothing, housing and various services in exchange for the rest of the produce. …” “In general, every individual in society is engaged in the production of some goods or services and she wants a combination of many goods and services not all of which are produced by her. …” |