Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

Assertion: There has been a substantial loss to the government by way of outright sale of public assets in the process of disinvestment.

Reasoning: It has been pointed out that the assets of PSEs have been undervalued and sold to the private sector.

Options:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Assertion (A) is true but Reasoning (R) is not correct.

Assertion (A) is not true but Reasoning (R) is correct.

Correct Answer:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Explanation:

The correct answer is option 1: Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Critics have pointed out that the assets of PSEs have been undervalued and sold to the private sector. This means that there has been a substantial loss to the government and the outright sale of public assets!