Every society has to answer three basic questions about its economy. Which of the following is NOT one of these three questions?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Who should own the factories and farms?
Every society must answer three questions: what to produce, how to produce and how to distribute the goods. Ownership is not one of them.
Option (1) What goods and services should be produced? — True. It is the first question.
Option (2) Who should own the factories and farms? — False. Ownership is how systems differ, for example under Soviet socialism. It is not one of the three questions.
Option (3) How should the goods and services be produced? — True. It asks, for example, whether to use more labour or more machines.
Option (4) How should the goods and services be distributed? — True. It is the third question.
NCERT (2026-27): “Box 2.1: Types of Economic Systems Every society has to answer three questions What goods and services should be produced in the country? How should the goods and services be produced? Should producers use more human labour or more capital (machines) for producing things? How should the goods and services be distributed among people? …” |