In a capitalist country, which of the following are roles of the State?
(A) Framing laws and enforcing them
(B) Delivering justice
(C) Undertaking production
(D) Maximising profits in the interest of its own shareholders
(E) Spending money on building public infrastructure
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B), (C) and (E) only
Maximising profit for shareholders is what a private company does, not the State.
(A) Framing laws and enforcing them — Correct. The role of the State includes framing and enforcing laws.
(B) Delivering justice — Correct. It also delivers justice.
(C) Undertaking production — Correct. In many instances the State undertakes production.
(D) Maximising profits in the interest of its own shareholders — Incorrect. This is the aim of a company, a micro agent.
(E) Spending money on building public infrastructure — Correct. The State spends money on public infrastructure, schools and health.
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. …” |