Question 4 - MCQ Questions (1 Mark) - Chapter 1 Class 6 Economics - Introduction to Economics - Economics

What is the economic goal that reflects how rights, opportunities, responsibilities, etc. are respected and protected for all members of society?

A. Efficiency

B. Equity

C. Growth

D. Stability

Answer:

Answer by Student

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So, the correct answer is option (B): Equity .

Detailed Explanation by Teachoo

Let’s understand the meaning and importance of each economic goal and why they are correct or incorrect.

• Option (A) Efficiency - Efficiency means using resources in the best possible way to produce the most output with the least waste. This goal reflects the value of productivity and optimal resource allocation. For example, an efficient economy produces more goods and services with fewer inputs or uses fewer resources to produce a given level of output. This means that there is less wastage or loss of resources in production. This goal does not directly address how rights, opportunities, responsibilities, etc. are respected and protected for all members of society. So, this is incorrect .
  
  
• Option (B) Equity - Equity means distributing resources and outcomes fairly among different groups and individuals. This goal reflects the value of justice and fairness. For example, an equitable economy ensures that everyone has access to basic needs such as food, health, education, etc. and that no one is discriminated against or exploited on the basis of their gender, race, religion, etc. This goal directly addresses how rights, opportunities, responsibilities, etc. are respected and protected for all members of society. So, this is correct .
  
  
• Option (C) Growth - Growth means increasing the quantity and quality of goods and services available over time. This goal reflects the value of progress and improvement. For example, a growing economy produces more goods and services each year than it did in the previous year. This means that there is an increase in output or income per person over time. This goal does not directly address how rights, opportunities, responsibilities, etc. are respected and protected for all members of society. So, this is incorrect .
  
  
• Option (D) Stability - Stability means maintaining a steady level of prices, output, employment and income. This goal reflects the value of security and predictability. For example, a stable economy avoids large fluctuations in prices, output, employment and income that can cause uncertainty, hardship and instability for individuals and businesses. This goal does not directly address how rights, opportunities, responsibilities, etc. are respected and protected for all members of society. So, this is incorrect .

Thus, option (B) is correct .

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