Which of the following is being used as a resource, in the sense in which economics uses the term?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Yarn used by a weaver to make cloth
A resource is a good or service used to produce other goods and services, such as land, labour, tools and machinery. The weaver uses yarn to make cloth, so the yarn is a resource.
Option (1) Yarn used by a weaver to make cloth — Correct. Yarn goes into making cloth.
Option (2) A shirt worn by a student to school — Incorrect. The shirt is used up by the student to meet his own need. It is not used to make anything.
Option (3) Food eaten by a family at home — Incorrect. Eating food at home is consumption; nothing more is produced from it.
Option (4) A film watched by a family for entertainment — Incorrect. Watching a film is also consumption, of a service.
NCERT (2026-27): “1.1 A Simple Economy … A family farm may own a plot of land, some grains, farming implements, maybe a pair of bullocks and also the labour services of the family members. A weaver may have some yarn, some cotton and other instruments required for weaving cloth. The teacher in the local school has the skills required to impart education to the students. …” “By resource, we mean those goods and services which are used to produce other goods and services, e.g. land, labour, tools and machinery, etc.” |