Government Intervention Need
Government intervention in education and health is essential because:
- These services have no private benefits
- Expenditures make substantial long-term impact and cannot be easily reversed — Correct Answer
- Government wants to control everything
- Private sector does not exist in these areas
Explanation:
Correct Answer Explanation
Expenditures on education and health make substantial long-term impact and cannot be easily reversed.
Key Points:
- Individual consumers don't have complete information about quality and costs.
- Providers can acquire monopoly power and exploit.
- Government ensures private providers adhere to standards and charge correct price.
📚 About this Topic — CH-4: HUMAN CAPITAL FORMATION IN INDIA
This multiple choice question is from CH-4: HUMAN CAPITAL FORMATION IN INDIA, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-4: HUMAN CAPITAL FORMATION IN INDIA to strengthen your preparation.
