Apart from framing laws, enforcing them and delivering justice, the State in many instances also:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → undertakes production
Besides framing laws, enforcing them and delivering justice, the State in many instances undertakes production. It also taxes and spends on infrastructure, schools and health.
Option (1) decides the consumption of each household — Incorrect. A household decides its own consumption.
Option (2) hires wage labour to earn profit for its shareholders — Incorrect. Earning profit for shareholders is the aim of a private company.
Option (3) undertakes production — Correct. The State takes part in production in many instances.
Option (4) carries out all the production in a capitalist country — Incorrect. In a capitalist country production is mainly carried out by capitalist enterprises, not all by the State.
NCERT (2026-27): “1.2 Context of the Present Book of Macroeconomics … In both the developed and developing countries, apart from the private capitalist sector, there is the institution of State. The role of the state includes framing laws, enforcing them and delivering justice. The state, in many instances, undertakes production – apart from imposing taxes and spending money on building public infrastructure, running schools, colleges, providing health services etc. These economic functions of the state have to be taken into account when we want to describe the economy of the country. …” “… In a capitalist country production activities are mainly carried out by capitalist enterprises. …” |