Previous year MCQs

Economy UPPSC 2000 GS-I
Question

Assertion (A): The Government is resorting to disinvestment of some of the public sector units (PSU's).
Reason (R): PSU's have not generated enough employment opportunities.

Codes:

Answer & Solution

Answer: (Detailed Solution Below)

Option B: Both A and R are true but R is not the correct explanation of A

Detailed Solution:

The correct answer is “Both A and R are true but R is not the correct explanation of A”.
The government has been disinvesting in some public sector units as a strategy to raise revenue, improve efficiency, and bring in private sector expertise.

While employment generation is a factor to consider, it's not the primary reason for disinvestment. The government's decision is driven by a broader set of economic objectives.

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