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Question

____________ provides supporting services in the main areas of industrial and agricultural production, domestic and foreign trade and commerce.

The correct answer is
Infrastructure

Infrastructure Supporting Production and Trade

The question asks to identify the sector providing essential supporting services for industrial and agricultural production, as well as domestic and foreign trade.

Understanding Supporting Services

Supporting services are crucial for the smooth operation and growth of various economic activities. These services create the necessary environment and provide the means for production and exchange.

Role of Infrastructure

Infrastructure refers to the fundamental facilities and systems serving a country, city, or area. It includes transportation networks, energy supplies, communication systems, and public utilities.

  • Industrial Production: Requires reliable energy, transportation for raw materials and finished goods, and communication networks.
  • Agricultural Production: Benefits from transportation for inputs and outputs, storage facilities, and communication for market information.
  • Trade and Commerce: Relies heavily on transportation (roads, ports, railways, airports), communication systems for transactions and information flow, and financial services infrastructure.

Analyzing the Options

  • Education: While important for workforce skills, it doesn't directly provide the physical and operational support for production and trade logistics.
  • Communication: A component of infrastructure, but infrastructure is a broader category encompassing more than just communication.
  • Trade: Represents the exchange of goods and services itself, not the supporting framework.
  • Infrastructure: Encompasses the physical networks and systems (transport, energy, communication) that directly enable and support industrial production, agricultural activities, and trade.

Therefore, Infrastructure is the sector that provides the core supporting services mentioned.

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Important Questions from Fundamentals of Economy

  1. The meaning of _______ is freedom for economic decisions, which means that all the producers, owners and consumers of factors of production are free to take their decisions to promote their self-interest.

  2. The problem of choice arises on account of the pressure of three interrelated facts, viz, human wants are unlimited, means required to satisfy these wants are limited and ____.

  3. "What to produce?" is a basic problem faced by an economy under which of the following central problems?

  4. In which type of economy social justice is accorded higher priority than profit maximization?

  5. Which industry is also known as basic industry?

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