Identify the incorrect statement relating to need for government intervention in education and health sector.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Basic education and health care is not considered as a right of the citizens
Government steps in here because basic education and health care are considered a right of the citizens. Option (4) says the reverse, so it is the incorrect statement.
Option (1) Expenditure in education and health have long term impact and cannot be easily reversed — True. If a child joins a poor school, much of the damage is done before the child can move to another one.
Option (2) Individual consumers of education and health care services do not have complete information about the quality of services and their costs — True. Because of this, providers gain monopoly power, so they can set their own terms and exploit consumers. The government has to set standards and see that fair prices are charged.
Option (3) Large section of India's population lives below its poverty line — True. Many such people cannot afford basic education and health care on their own.
Option (4) Basic education and health care is not considered as a right of the citizens — False. Since they are a right, the government should provide these services free of cost for deserving citizens and the socially oppressed classes.
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. For instance, once a child is admitted to a school or health care centre where the required services are not provided, before the decision is taken to shift the child to another institution, 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 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 health care 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 is considered as a right of the citizens, then it is essential that the government should provide education and health services free of cost for the deserving citizens and those from the socially oppressed classes.…” |