Match List-I (idea) with List-II (example):List-IList-II(A) Prices as…

Match List-I (idea) with List-II (example):

List-I	List-II
(A) Prices as signals	(I) Vehicles are made in India instead of being imported
(B) Ownership and incentives	(II) Women’s talents are used in banks, factories and schools
(C) Modernisation	(III) People stop watering the garden when the price of water goes up
(D) Import substitution	(IV) Farmers who own no land pack rotten fruits with fresh fruits

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(II), (D)-(I)

Each example shows one idea from the planning period at work.

List-I	List-II	Reason
(A) Prices as signals	(III) People stop watering the garden when the price of water goes up	A higher price signals that water is scarce, so people use it with care.
(B) Ownership and incentives	(IV) Farmers who own no land pack rotten fruits with fresh fruits	Without ownership, the farmer gets no profit and no loss, so he does not care.
(C) Modernisation	(II) Women’s talents are used in banks, factories and schools	Modernisation also means a change in social outlook, not only new technology.
(D) Import substitution	(I) Vehicles are made in India instead of being imported	Imports are replaced by domestic production.

NCERT (2026-27): “Box 2.6: Prices as Signals … If a good becomes scarce, its price will rise and those who use this good will have the incentive to make efficient decisions about its use based on the price. If the price of water goes up because of lower supply, people will have the incentive to use it with greater care; for example, they may stop watering the garden to conserve water. …”

“Box 2.5: Ownership and Incentives … The importance of ownership in providing incentives is well illustrated by the carelessness with which farmers in the former Soviet Union used to pack fruits for sale. It was not uncommon to see farmers packing rotten fruits along with fresh fruits in the same box. …”

“2.2 The Goals of Five Year Plans … However, modernisation does not refer only to the use of new technology but also to changes in social outlook such as the recognition that women should have the same rights as men. In a traditional society, women are supposed to remain at home while men work. A modern society makes use of the talents of women in the work place — in banks, factories, schools etc. — and such a society in most occassions is also prosperous.”

“2.5 Trade Policy: Import Substitution … This policy aimed at replacing or substituting imports with domestic production. For example, instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself. …”