General Studies- IIII: Economy [10 Marks 150 Words ]
Answer Structure:
- Introduction: Meaning of Means
- Body: Factors of production, how resources can be put to alternative uses .
- Conclusion: choice is the crux of all economic activities
Answer
Introduction
Means refers to resources, viz., natural, human and man-made required to produce the material goods and services desired by the human beings.
Body
Economists usually classify resources into land, capital, labor, and organization.
These four broad categories are sometimes referred to as factors of production. Land falls under the category of natural resources. Capital or investment goods are tools, machinery and other productive equipment made by man .
labor and organization or entrepreneurial ability are part of the human resources.
One of the important characteristics of these resources is that they can be put to alternative uses. If resources are specific and can be utilized only for one purpose, the question of choice in allocation of resources will not arise. A piece of land that can be utilized only for grazing does not pose a problem of choice. However, if it can be utilized for grazing, cultivation, or household building, then the problem of choice arises.
Conclusion
In general, means are not only limited but can also be put to alternative uses. Thus, choice is the crux of all economic activities.
(The model answer provided by us strictly follows the word limit, the above answer is compiled in 178 words.)
Practicing answers sticking to the word limit will aid the aspirants to write answers precisely and to the point avoiding unnecessary things.
(Titles : Introduction, Body and Conclusion are just for reference, aspirants should not write these titles in the answer sheet.)