Study the table and answer the question.
| Good | How users pay | Who produces it |
|---|---|---|
| W: a road | No direct payment; paid for from the budget | A private contractor |
| X: a primary school | No direct payment; paid for from the budget | A government department |
| Y: clothes | Price paid at the shop | A private firm |
| Z: rail tickets | Price paid for each ticket | A government department |
Which of these goods is publicly provided but NOT publicly produced?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → W
Public provision means the good is paid for from the budget and used with no direct payment. Public production means the government itself produces it.
Road W is paid for from the budget but built by a private contractor: provided, not produced, by the government.
School X is both provided and produced by the government. Rail tickets Z are produced by a government department but sold for a price. Clothes Y are neither.
NCERT (2026-27): “Allocation Function of Government Budget … There is, however, a difference between public provision and public production. Public provision means that they are financed through the budget and can be used without any direct payment. Public goods may be produced by the government or the private sector. When goods are produced directly by the government it is called public production.” |