A farmer owns his land. He keeps a small part of the crop for the family and sells the rest in the market. All the work on the farm is done by his family members; no worker is hired from outside. Which feature of a capitalist economy, as listed in NCERT, is missing on this farm?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Sale and purchase of labour services at a price called the wage rate
The farm is run only by family members, so no labour is bought or sold at a wage rate. That feature of a capitalist economy is missing.
Option (1) Production for selling the output in the market — Incorrect. The farmer sells most of the crop, so production for the market is present.
Option (2) Sale and purchase of labour services at a price called the wage rate — Correct. No outside worker is hired, so there is no wage labour.
Option (3) Use of natural resources such as plots of land in production — Incorrect. The farm uses its own land, so natural resources are used.
Option (4) Private ownership of means of production — Incorrect. The farmer owns his land, so private ownership is present.
NCERT (2026-27): “1.2 Context of the Present Book of Macroeconomics … In short, a capitalist economy can be defined as an economy in which most of the economic activities have the following characteristics |