Question 5 - MCQ Questions (1 Mark) - Chapter 1 Class 6 Economics - Introduction to Economics - Economics

What is the economic goal that reflects not only output but also other aspects of well-being such as health, education, environment, etc.?

A. Efficiency

B. Equity

C. Growth

D. Sustainability

Answer:

Answer by Student

So, the correct answer is option (C):Growth .

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 other aspects of well-being such as health, education, environment, etc. 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 does not directly address other aspects of well-being such as health, education, environment, etc. So, this is incorrect .
  
  
• 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 directly addresses other aspects of well-being such as health, education, environment, etc. So, this is correct .
  
  
• Option (D) Sustainability - Sustainability means using resources in a way that does not compromise the ability of future generations to meet their needs. This goal reflects the value of environmental protection and intergenerational equity. For example, a sustainable economy preserves and enhances the natural environment and the quality of life for present and future generations. This goal does not directly address other aspects of well-being such as health, education, environment, etc. So, this is incorrect .

Thus, option (C) is correct .