Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:
Why were some economists critical of the performance of many public sector enterprises?
Options:
They lacked government support.
They contributed to regional inequality.
They were unprofitable and a drain on resources.
They monopolized essential services.
Correct Answer:
They were unprofitable and a drain on resources.
Explanation:
Many public sector firms incurred huge losses but continued to function, despite being unprofitable and draining the nation's limited resources.