The society needs several goods and services. However, the private sector does not produce all of them. Identify the correct reason for the private sector not being able to cater to all the needs of the society.

The private sector lacks space to work.

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The private sector lacks employees.

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The private sector is profit driven.

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The private sector is entertainment driven.

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Solution

The correct option is C The private sector is profit driven.
Some services, such as defence services, require a lot of spending and do not make any profit. Activities in the private sector are guided by the motive to earn profit and not the welfare of people.

The society needs several services, which the private sector cannot provide at a reasonable price. Activities like construction of roads, bridges, railways, irrigation through dams, and more require a huge amount of money, which is beyond the capacity of the private sector.

The private sector charges are high for the use of these services. Further, it is difficult for the private sector to collect money from thousands of people who use these services.

Suggest Corrections

Similar questions

Statement:Should there be reservation of jobs in the organization in the private sector also in the public sector undertaking in India?

Argument:

I. Yes, this would give more opportunities of development to the weaker sections of the society and thus help reduce the gap between the affluent and the downtrodden in India.

II. No, the private sector does not get any government assistance and therefore, they should not be saddled with such policies.

III. No, now where else in the world such a practice is being followed.

IV. No, the management of the private sector undertaking would not agree to such compulsions.

Statement: Should there be reservation of jobs in the organizations in the private sector also as in the public sector undertakings in India?

Arguments:
I. Yes. This would give more opportunities of development to the weaker sections of the society and thus help reduce the gap between the affluent and the downtrodden in India.
II. No. The private sector does not get any government assistance and therefore they should not be saddled with such policies.
III. No. Nowhere else in the world such a practice is being followed.
IV. No. The management of the private sector undertaking would not agree to such compulsions.

Q. _______ refers to the transfer of government services or assets to the private sector.

Statement: Should all the profit making public sector units be sold to private companies?

Arguments:
I. Yes. This will help the government to augment its resources for implementing the development programmes.
II. No. The private companies will not be able to run these units effectively.
III. Yes. There will be a significant improvement in the quality of services.
IV. No. There would not be job security for the employees at all the levels.

Q. _______ refers to the transfer of government services or assets to the private sector.

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