In development economics, which one of the following is not usually considered an example of economic overheads or basic economic infrastructure?

Difficulty: Easy

Correct Answer: Coal Mines

Explanation:


Introduction / Context:
Economic overheads, also known as basic economic infrastructure, are facilities and services that support production, trade, and overall economic development. These include transport networks, power systems, communication networks, and sometimes social infrastructure like education and sanitation. Exams often ask which items belong to this category and which do not. This question checks whether you can distinguish between basic infrastructure and primary production activities such as mining.


Given Data / Assumptions:

  • The focus is on the concept of economic overheads or economic infrastructure.
  • The options are schools, sanitary facilities, roads and railways, and coal mines.
  • We assume that economic overheads are facilities that provide general support services to the economy, rather than producing a specific commodity.
  • We are looking for the item that does not fit this general category.


Concept / Approach:
Economic overheads typically include transport infrastructure like roads and railways, power and energy networks, irrigation systems, communication facilities, and sometimes key social infrastructure such as schools and sanitation that enhance human capital. They do not usually include specific production units such as coal mines, steel plants, or textile factories. Coal mines produce a particular commodity, coal, which is an input for power and industry, but the mines themselves are not overheads. Instead, they are part of the primary production sector.


Step-by-Step Solution:
Step 1: Consider roads and railways. These clearly support the movement of goods and people and are classic examples of economic infrastructure.Step 2: Consider schools. Education builds human capital and is often treated as social infrastructure, which is closely linked with economic overheads in development discussions.Step 3: Consider sanitary facilities. These improve public health and productivity, and are again considered part of basic infrastructure in many development plans.Step 4: Consider coal mines. These are sites for extracting a specific natural resource for sale and industrial use. They are primary production units, not general supporting infrastructure.Step 5: Therefore, coal mines are not normally classified as economic overheads and form the correct answer.


Verification / Alternative check:
Development economics literature often groups transport, power, communication, education, and health facilities as infrastructure or overhead capital. The idea is that this capital supports many sectors at once. Coal mines, on the other hand, are classified under mining and quarrying in national accounts. They produce outputs but are not systematic support systems for other activities in the same sense that roads, schools, and sanitation systems are. This confirms that coal mines stand apart from the list of economic overheads given in the question.


Why Other Options Are Wrong:
Schools: Contribute to human capital formation and are considered part of social infrastructure, which supports long term economic growth.

Sanitary Facilities: Improve public health and labour productivity and are recognised as important basic infrastructure in rural and urban development schemes.

Roads and Railways: These are classic economic overheads that reduce transport costs and integrate markets, so they definitely belong in the category.


Common Pitfalls:
Students sometimes think that anything related to the economy must be an economic overhead. This is not correct. Overheads are the backbone facilities that support a wide range of activities. Extraction industries like coal mining produce specific goods and are part of the primary sector. Keeping this distinction in mind helps in handling similar questions correctly.


Final Answer:
Coal mines are not usually considered an example of economic overheads.

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