Multiple choice

Which of the following statements, regarding privatisation is correct?

  1. Privatisation is a panacea for all economic problems.

  2. Privatisation always leads to attaining social and economic efficiency.

  3. Privatisation may result in lop-sided development of industries in the country.

  4. None of the above

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Privatisation can indeed lead to uneven industrial development as private investors focus on profitable sectors rather than balanced regional growth. Option A is incorrect because privatisation is not a universal solution to economic problems. Option B is incorrect because privatisation does not guarantee efficiency; it depends on market conditions and regulatory frameworks.

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