Find the missing step in this chain:
People in a society want more corn than the farming units are producing → [ ? ] → More corn is produced in the society
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Resources used in producing some other goods and services are reallocated to the production of corn
When people want more corn than is produced, resources are taken from some other goods and services and put into corn. That is how more corn comes to be produced.
Option (1) The farming units leave a part of their land unused — Incorrect. Leaving land unused lowers output, so it cannot give more corn.
Option (2) The farming units shift some of their resources from corn to other goods and services — Incorrect. This moves resources away from corn, the opposite direction.
Option (3) A part of the corn produced is exchanged for other goods and services — Incorrect. Exchanging corn already grown adds nothing to the corn produced.
Option (4) Resources used in producing some other goods and services are reallocated to the production of corn — Correct. This reallocation raises corn output.
NCERT (2026-27): “1.1 A Simple Economy … Needless to say that there has to be some compatibility between what people in society collectively want to have and what they produce. For example, the total amount of corn produced by family farm along with other farming units in a society must match the total amount of corn that people in the society collectively want to consume. If people in the society do not want as much corn as the farming units are capable of producing collectively, a part of the resources of these units could have been used in the production of some other good or services which is in high demand. On the other hand, if people in the society want more corn compared to what the farming units are producing collectively, the resources used in the production of some other goods and services may be reallocated to the production of corn. Similar is the case with all other goods or services. …” |