In the context of economic reforms, 'Disinvestment' involves: MCQ with Answer and Explanation

In the context of economic reforms, 'Disinvestment' involves:
A. Sale of government equity in public sector enterprises
B. Nationalisation of private firms
C. Complete closure of all public enterprises
D. Increasing government stake in public sector enterprises
Answer: Option A
Solution (By JKSSB Mock Tests)
Disinvestment refers to the sale of government-held shares in public sector enterprises to private investors or the public, thereby reducing the government's ownership stake.

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Practice More Economy Set 1 Questions

Question #1
The Foreign Exchange Management Act was enacted in which year?
A. 1992
B. 1973
C. 1999
D. 2005

Correct Answer: Option C


Explanation:
FEMA was enacted in 1999, replacing FERA.

This question belongs to: Economy GK Economy Set 1
Question #2
The concept of 'Opportunity Cost' is best defined as:
A. The difference between total revenue and total cost
B. The total cost incurred in production
C. The cost of producing one more unit of a commodity
D. The value of the next best alternative forgone

Correct Answer: Option D


Explanation:
Opportunity cost refers to the value of the next best alternative that is sacrificed when a choice is made. It is a fundamental concept in economics.

This question belongs to: Economy GK Economy Set 1
Question #3
The concept of consumer surplus was developed by:
A. J.M. Keynes
B. Alfred Marshall
C. David Ricardo
D. Adam Smith

Correct Answer: Option B


Explanation:
Alfred Marshall developed the concept of consumer surplus.

This question belongs to: Economy GK Economy Set 1