Passage 6: NDA I 2012 GAT Question Paper


Even in the most primitive societies, the great majority of people satisfy a large part of their material needs by exchanging goods and services. Very few people indeed can make for themselves everything they need-all their food, their clothes, their housing, their tools. Ever since men started living in communities, they have been satisfying their needs by means of specialization and exchange; increasingly each individual has concentrated on what he can does best, and has produced more of the special goods or services in which he has concentrated, than he can consume himself. The surplus he has exchanged with other members of the community, acquiring, in exchange the things he needs that others have produced.


1. According to the passage, the great majority of people can satisfy their needs today by

(A) providing things for themselves

(B) exchanging goods and services

(C) concentrating on what they can do best

(D) individual specialization

Answer: (B)

2. Exchange of good becomes possible only when

(A) there is no specialization

(B) goods are produced in surplus

(C) primitive societies become modern

(D) individuals make things for themselves

Answer: (B)

3. Specialization and exchange began when men started

(A) big industries

(B) concentrating on their work

(C) producing things for individual use

(D) living in communities

Answer: (D)

4. Exchange of goods and services becomes necessary because

(A) man is a social being

(B) reciprocity is the law of life

(C) trade and commerce are means of progress

(D) we cannot produce everything we need ourselves

Answer: (D)