Question

Exchange of goods and services becomes necessary because ___.
A) man is a social animal
B) reciprocity is the law of life
C) trade and commerce are means of progress
D) we cannot produce everything we need ourselves.

Answer 1

Hint: Since men began to live in communities, they have met their needs through specialisation and exchange; increasingly, each person has focused on what he does best and has created more of the special goods or services on which he has concentrated than he can consume. The surplus has been shared with other members of the group.

Complete answer:
The passage from which the question was taken is:
“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 do 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.”

Now, let us look at the given options:
A) man is a social animal: This answer is incorrect because the passage does not mention anything about man’s social needs. This line means that man has to live in a society with his fellow beings.
B) reciprocity is the law of life: This answer is incorrect because the passage mentions the exchange of goods for other goods which the person needs to satisfy his own needs whereas the law of reciprocity mentions the psychological need to return a favour from someone.
C) trade and commerce are means of progress: This answer is incorrect because the passage does not mention anything about trade and commerce. It is simply pointing out the barter system of the economy where goods were exchanged for other goods.
D) we cannot produce everything we need ourselves: This is the correct option. The passage begins by stating that people have traded goods and services since ancient times. In the second sentence, it is stated that only a small percentage of people can produce anything they need, such as food, clothing, housing, and equipment.

Thus, the correct answer is Option D.

Note: Understanding any language requires the ability to solve comprehension passages. It is the skill of absorbing, comprehending, and recalling what you have read in any piece of literature. Once you've grasped the meaning of the passage, you'll be able to rewrite it with your own terms.