How many of the following were considered lacunas of the economic policy before 1991? a. The private…
All four statements describe criticisms of the economic policy framework before 1991. Licensing and controls restricted private investment, public investment often produced…
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How many of the following were considered lacunas of the economic policy before 1991?
a. The private sector investment was inhibited by the controls and licensing policy.
b. Public sector investment, although huge, yielded poor rate of return.
c. Public sector enjoyed a monopoly in all areas which were reserved for it.
d. Foreign investment was discouraged due to the intricate licensing and other regulations.
Answer and explanation
Correct answer A
All four statements describe criticisms of the economic policy framework before 1991. Licensing and controls restricted private investment, public investment often produced weak returns, and reserved sectors limited competition. Restrictions and complex procedures also discouraged foreign investment.
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Telangana SET (TG SET)