Which of the given sectors is largely driven by considerations of social welfare?
- A.Foreign
- B.Co-operative
- C.Public
- D.Private
Correct answer
Explanation
The correct answer is C, Public. The public sector is owned and run by the government, and its guiding aim is social welfare rather than profit. Services such as railways, electricity, drinking water, schools and hospitals need heavy spending and return money slowly, so private firms often keep away from them; the state supplies them at prices ordinary people can pay. The public sector is also used to reduce regional imbalance and to create employment, and in India it expanded after the Industrial Policy Resolution of 1956 gave the state the leading role in basic industries. Option A is wrong because the foreign sector covers trade and investment across borders and follows returns. Option B is wrong because the co-operative sector is owned by its own members and works chiefly for their benefit, not for society at large. Option D is wrong because the private sector is owned by individuals and companies whose main aim is profit. Exam tip: public sector equals government ownership plus welfare motive; private sector equals private ownership plus profit motive.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
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Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
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UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
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The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
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GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
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