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

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

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Practice More Economy Set 1 Questions

Question #1
The Atal Mission for Rejuvenation and Urban Transformation focuses on:
A. urban infrastructure and basic services
B. railway electrification
C. rural roads
D. agricultural markets

Correct Answer: Option A


Explanation:
AMRUT focuses on urban infrastructure and basic services.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Agreement on Agriculture' under WTO came into force in which year?
A. 1998
B. 1994
C. 2000
D. 1995

Correct Answer: Option D


Explanation:
The Agreement on Agriculture came into force in 1995.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of market structures, 'Price Discrimination' is possible under:
A. Both perfect competition and monopoly equally
B. Perfect competition
C. Monopoly
D. Only in agricultural markets

Correct Answer: Option C


Explanation:
Price discrimination (charging different prices to different consumers for the same product) is typically possible under monopoly where the firm has market power and can segment markets.

This question belongs to: Economy GK Economy Set 1