Statement I: In many underdeveloped countries, production, especially in agriculture, is carried out by peasant families.
Statement II: Many developing countries have a significant presence of production units organised according to capitalist principles.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Both Statement I and Statement II are true.
In many underdeveloped countries, farming is done by peasant families. Yet many developing countries also have a significant presence of firms run on capitalist principles.
Statement I: In many underdeveloped countries, production, especially in agriculture, is carried out by peasant families. — True. Family members do most of the work on such farms.
Statement II: Many developing countries have a significant presence of production units organised according to capitalist principles. — True. These units are called firms.
NCERT (2026-27): “1.2 Context of the Present Book of Macroeconomics … In many underdeveloped countries production (in agriculture especially) is carried out by peasant families. Wage labour is seldom used and most of the labour is performed by the family members themselves. Production is not solely for the market; a great part of it is consumed by the family. … It is, however, true that many developing countries have a significant presence of production units which are organised according to capitalist principles. The production units will be called firms in this book.” |