MC19 What is the impact of a large public sector on the Indian economy?
A. Reduced government revenue
B. Reduced private sector investment
C. Reduced economic growth
D. All of the above
Answer:D
MC19 What is the impact of a large public sector on the Indian economy?
A. Reduced government revenue B. Reduced private sector investment C. Reduced economic growth D. All of the above
Explanation: A large public sector can have a range of impacts on the Indian economy. When the public sector is large, it can reduce government revenue, as the government may need to spend more money on salaries and benefits for public sector employees. Additionally, a large public sector can reduce private sector investment, as investors may be hesitant to invest in an economy where the government is the dominant player. Finally, a large public sector can reduce economic growth, as resources may be diverted away from the private sector and towards the public sector.