Question

List the adverse effect(s) of the absence of private ownership.

• A. Absence of incentive to the private individuals
• B. Entire burden falls on the government
• C. Increase in social disparity
• D. Limited choice of products

Answer 1

Answer: (A), (B), (D)

Limited choice of products

In the absence of private ownership, the private players may not feel motivated to take up economic ventures. Thus, the market is dominated by public sector enterprises. For customers, it leads to limited choice in products in the market. On the other hand, the entire burden of the economy swiftly shifts to the government.