Assertion (A): Privatisation was expected to improve the efficiency of public sector firms.
Reason (R): Private owners have a stronger profit motive to cut waste.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

A firm whose owners keep the profit has more reason to run efficiently.
R explains A.

Concept: Privatisation
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsPrivatisation and disinvestment

Practise this chapter →

Ten questions from Economic Reforms since 1991 (LPG), at your own pace.

Practise this chapter →

Ten questions from Economic Reforms since 1991 (LPG), at your own pace.

Practise this chapter All 65 questions in Economic Reforms since 1991 (LPG)Revise the notes for Economic Reforms since 1991 (LPG)

Assertion (A): Privatisation was expected to improve the efficiency of public sector firms.Reason (R): Private owners have a stronger profit motive to cut waste.

Explanation

Assertion (A): Privatisation was expected to improve the efficiency of public sector firms.
Reason (R): Private owners have a stronger profit motive to cut waste.