Parents admit their child to a private school that charges a high fee. They do not know how good its teaching is. Two years later they find it poor, but by then the damage to the child’s learning cannot be undone by shifting schools. Which two reasons for government intervention in education does this case show?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Long-term impact that cannot be easily reversed, and incomplete information of consumers about quality and costs
Two reasons for government intervention fit the case:
Education has a long-term impact that cannot be easily reversed. By the time the child is moved, the damage is done.
Consumers have incomplete information about quality and costs. The parents did not know how good the school was.
The case says nothing about poverty or rights: the family pays a high fee.
NCERT (2026-27): “4.5 State of Human Capital Formation in India … 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. …” |