Which of the following statements is true regarding subsistence economy?a)It is a market (protected thoroughly from fraud) that consistently produces technology.b)Goods are produced to provide for oneself or ones family.c)It is a type of agriculture characterized by high output per unit of land.d)All of the aboveCorrect answer is option 'B'. Can you explain this answer?

Question

Answer

In a subsistence economy, goods are produced to provide for oneself or one's family.
A subsistence economy is an economy directed to basic subsistence (the provision of food, clothing, shelter) rather than to the market. "Subsistence" is understood as supporting oneself at a minimum level. Often, the subsistence economy is moneyless and relies on natural resources to provide for basic needs through hunting, gathering, and agriculture. In a subsistence economy, economic surplus is minimal and only used to trade for basic goods, and there is no industrialization.

Answer

Subsistence Economy

Introduction:
A subsistence economy is a type of economic system where goods and services are produced primarily to meet the basic needs of individuals and families. In this system, the focus is on self-sufficiency and ensuring the survival and well-being of the community rather than generating profits or engaging in trade.

Explanation:
Goods produced for oneself or one's family:
In a subsistence economy, individuals and families produce goods and services primarily for their own consumption. The main goal is to meet their basic needs such as food, clothing, and shelter. The surplus, if any, may be exchanged or traded within the community, but the primary focus is on self-sufficiency rather than engaging in commercial activities.

Self-sustainability:
One of the key characteristics of a subsistence economy is its focus on self-sustainability. The community relies on its own resources and does not heavily depend on external trade or markets to meet its needs. This self-sufficiency helps in reducing the vulnerability to external shocks and ensures the community's survival even in times of economic downturns or disruptions.

Lack of technology advancement:
Unlike option (a), a subsistence economy does not prioritize the consistent production of technology. The main focus is on meeting basic needs rather than technological advancements. Innovation and technological progress may occur to some extent, but it is not the primary driver of economic activity in a subsistence economy.

Low output per unit of land:
Contrary to option (c), a subsistence economy is typically characterized by low output per unit of land. The production is often labor-intensive and relies on traditional agricultural practices, which may not yield high levels of productivity compared to modern agricultural methods. The emphasis is on sustaining the community rather than maximizing output.

Conclusion:
In summary, a subsistence economy is an economic system where goods and services are produced primarily to meet the basic needs of individuals and families. It focuses on self-sufficiency and meeting the immediate requirements of the community. While technological advancements and high output per unit of land are not the primary characteristics of a subsistence economy, the production is centered around providing for oneself or one's family. Therefore, option (b) is the correct statement regarding a subsistence economy.

Similar Humanities/Arts Doubts

Which one of the following characteristics is not a feature of intensive subsistence agriculture?

Top Courses for Humanities/ArtsView all

Chapter Notes for Humanities

NCERT Books & Solutions for Humanities

Online MCQ Tests for Humanities

Short & Long Question Answers for Humanities

Geography Class 11

Top Courses for Humanities/Arts

Top Courses for Humanities/Arts

Suggested Free Tests

Related Content

Humanities Courses

Other Courses

How To Prepare?

Other Exams

Company