Topics: CH-2: INDIAN ECONOMY 1950–1990, Indian Economic Development, NCERT Books

Public Sector Losses

Question

A major criticism of public sector enterprises was:

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Question (English)

A major criticism of public sector enterprises was:

  1. They produced too many goods
  2. Many incurred huge losses but continued to function ✓ Correct
  3. They competed too aggressively
  4. They promoted too many exports
Explanation:
Correct Answer Explanation

Many public sector firms incurred huge losses but continued because closing a government undertaking is difficult.

Key Points:
  • Some were originally private firms on verge of closure — nationalised to protect jobs.
  • A loss-making private firm would not waste resources by being kept running.
  • State should get out of areas manageable by private sector.

📚 About this Topic — CH-2: INDIAN ECONOMY 1950–1990

This multiple choice question is from CH-2: INDIAN ECONOMY 1950–1990, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-2: INDIAN ECONOMY 1950–1990 to strengthen your preparation.

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