Assertion (A): Closing a loss-making public sector firm was difficult.
Reason (R): Public sector firms never made any losses.

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 C

Correct answer: C

It is hard to close a government undertaking even when it drains resources: A is true.
Many did make losses, so R is false.

Concept: Problems of the public sector
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsRole of the public sector

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Ten questions from Industry & Trade, 1950–90, at your own pace.

Practise this chapter →

Ten questions from Industry & Trade, 1950–90, at your own pace.

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Assertion (A): Closing a loss-making public sector firm was difficult.Reason (R): Public sector firms never made any losses.

Explanation

Assertion (A): Closing a loss-making public sector firm was difficult.
Reason (R): Public sector firms never made any losses.