Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:

Identify the incorrect statement relating to need for government intervention in education and health sector.

Options:

Expenditure in education and health have long term impact and cannot be easily reversed

Individual consumers of education and health care services do not have complete information about quality of service cost

Large section of India's population lives below its poverty line

Basic education and health care is not considered as a right of the citizens

Correct Answer:

Basic education and health care is not considered as a right of the citizens

Explanation:

Expenditures on education and health make substantial long-term impacts and they cannot be easily reversed; hence, government intervention is essential. For instance, once a child is admitted to a school or health care center where the required services are not provided before the decision is taken to shift the child to another institution, a substantial amount of damage would have been done. Moreover, individual consumers of these services do not have complete information about the quality of services and their costs.  In this situation, the providers of education and health services acquire monopoly power and are involved in exploitation. The role of the government in this situation is to ensure that the private providers of these services adhere to the standards stipulated by the government and charge the correct price. In a developing country like India, with a large section of the population living below the poverty line, many people cannot afford to access basic education and healthcare facilities. Moreover, a substantial section of India’s population cannot afford to reach super specialty health care and higher education. Furthermore, when basic education and health care are considered a right of the citizens, then it is essential that the government should provide education and health services free of cost for deserving citizens and those from the socially oppressed classes.