Disinvestment refers to: MCQ with Answer and Explanation

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Disinvestment refers to:

A. foreign investment in defence

B. purchase of private sector equity by the government

C. sale of government equity in public sector enterprises

D. borrowing from the IMF

Answer: Option C

Solution (By JKSSB Mock Tests)

Disinvestment is the sale of government equity in public sector enterprises.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'GST' regime has not subsumed which central tax?

A. Special additional customs duty

B. Basic customs duty

C. Additional excise duty

D. Service tax

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Correct Answer: Option B

Explanation:
Basic customs duty remains outside GST.

This question belongs to: Economy GK Economy Set 1

Question #2

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Which of the following is a feature of 'Privacy-Enhancing Technologies'?

A. Only encryption without any other tools

B. Only complete data anonymisation that destroys all utility

C. Technologies that maximise data collection without safeguards

D. Technical methods that allow data to be used while minimising the exposure of personal information

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Correct Answer: Option D

Explanation:
Privacy-enhancing technologies (PETs) comprise a range of technical approaches—such as differential privacy, homomorphic encryption and secure multi-party computation—that enable data analysis while protecting individual privacy.

This question belongs to: Economy GK Economy Set 1

Question #3

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In the context of market failure, 'Asymmetric Information' leads to:

A. Adverse selection and moral hazard

B. Efficient market outcomes

C. Perfect competition

D. Zero transaction costs

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Correct Answer: Option A

Explanation:
Asymmetric information, where one party has more information than the other, can lead to adverse selection (before the contract) and moral hazard (after the contract).

This question belongs to: Economy GK Economy Set 1

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