Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Which of the following is the best example of Public provision and Public Production respectively?

Options:

Opening up of 11 Central University in next 5 years worth of 20,000 cr from annual budget 2024-25, BSNL.

Airtel, BSNL.

AIIMS, Coal India Limited.

5 lacs brick homes to people from "Below Poverty Line" strata, Loan of up to 10 lac to women entrepreneurs.

Correct Answer:

Opening up of 11 Central University in next 5 years worth of 20,000 cr from annual budget 2024-25, BSNL.

Explanation:

The correct answer is Option (1) → Opening up of 11 Central University in next 5 years worth of 20,000 cr from annual budget 2024-25, BSNL.

Option 1: Opening up of 11 Central Universities worth ₹20,000 crore (Public Provision) and BSNL (Public Production): correct Pair

  • Public Provision: The government allocates funds from the annual budget to establish new Central Universities — this is provision of education as a public service. It represents Public Provision, because the government provides the good/service using taxpayer money.

  • Public Production: BSNL is a public sector enterprise owned by the Government of India, which produces and supplies telecom services. Hence, Public Production.

Note: The given answer is as per NTA.However, Option 3 can also be the answer to this question as explained below.

Option 3: AIIMS, Coal India Limited : Incorrect

  • These are premier public hospitals and medical colleges established by an Act of Parliament and fully funded by the Government of India. They provide medical services (a public service/good) and are directly run and managed by the government. This is a clear example of Public Provision (funded by the government)

  • Coal India Limited is also public production (it produces coal).