If we treat a single category of labour as the representative of all kinds of labour, what may we be unable to do?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Tell the labour of a firm's manager apart from the labour of its accountant
If one kind of labour stands for all labour, the differences between kinds of labour are lost. We cannot tell a manager’s labour from an accountant’s.
Option (1) Find the total number of people employed in the economy — Incorrect. Total employment is an aggregate; a representative labour still shows the general employment level.
Option (2) Separate the work of households from the work of the government — Incorrect. Households and government are sectors; this has nothing to do with treating labour as one kind.
Option (3) Know whether the general price level is rising or falling — Incorrect. The representative good still reflects the general price level.
Option (4) Tell the labour of a firm's manager apart from the labour of its accountant — Correct. The distinctive features of each kind of labour are overlooked.
NCERT (2026-27): “Introduction … While moving away from different goods and focusing on a representative good may be convenient, in the process, we may be overlooking some vital distinctive characteristics of individual goods. For example, production conditions of agricultural and industrial commodities are of a different nature. Or, if we treat a single category of labour as a representative of all kinds of labours, we may be unable to distinguish the labour of the manager of a firm from the labour of the accountant of the firm. …” “… Similarly, the price or employment level of this representative good will reflect the general price and employment level of the economy.” |