Which of the following pairs of a choice and the central problem it belongs to are correctly matched?
(A) Whether to have more of basic education or more of higher education – What to produce
(B) Whether elementary education should be available freely for everyone – For whom to produce
(C) Whether to use more resources in health or in military services – How to produce
(D) Whether to ensure a minimum amount of consumption for everyone – What to produce
(E) Whether to have more of consumption goods or more of investment goods like machines – How to produce
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A) and (B) only
‘What to produce’ is about which goods and services, and how much of each. ‘How’ is about the method, such as labour or machines. ‘For whom’ is about who gets the output.
(A) Whether to have more of basic education or more of higher education – What to produce — Correct. It chooses which service to produce more of.
(B) Whether elementary education should be available freely for everyone – For whom to produce — Correct. Free education for all decides who gets the service.
(C) Whether to use more resources in health or in military services – How to produce — Incorrect. It chooses which services the resources go to, so it is what to produce. No method is being chosen.
(D) Whether to ensure a minimum amount of consumption for everyone – What to produce — Incorrect. A minimum for everyone is about who gets the goods, so it is for whom to produce.
(E) Whether to have more of consumption goods or more of investment goods like machines – How to produce — Incorrect. Machines are named here as goods to be produced, not as a method. The choice is what to produce.
NCERT (2026-27): “What is produced and in what quantities? … Whether to use more resources in education and health or to use more resources in building military services. Whether to have more of basic education or more of higher education. Whether to have more of consumption goods or to have investment goods (like machine) which will boost production and consumption tomorrow.” “For whom are these goods produced? … Who gets more and who gets less? Whether or not to ensure a minimum amount of consumption for everyone in the economy. Whether or not elementary education and basic health services should be available freely for everyone in the economy.” |