A joint family of six members takes all its decisions about what to buy for the family’s consumption together. As per NCERT, this family is:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → one household
A household can be a group of individuals whose consumption decisions are jointly determined. The joint family decides together, so it is one household.
Option (1) not a household, because a household is a single individual — Incorrect. A household may be a single person or a group.
Option (2) six households, one for each member — Incorrect. The members do not decide separately, so they are not six households.
Option (3) one household — Correct. Joint decisions on consumption make it one household.
Option (4) a firm, because it buys goods from the market — Incorrect. A firm produces goods for sale. Buying goods for the family is what households do.
NCERT (2026-27): “1.2 Context of the Present Book of Macroeconomics … Apart from the firms and the government, there is another major sector in an economy which is called the household sector. By a household we mean a single individual who takes decisions relating to her own consumption, or a group of individuals for whom decisions relating to consumption are jointly determined. Households also save and pay taxes. …” |