Which of the following is not a public policy to promote the private sector ?

Correct answer: D. Increasing market monopolies and oligopolies to help producers

  • A. Investigating development potential through scientific and market research and natural resources surveys
  • B. Providing adequate infrastructure for public and private agencies
  • C. Creating markets, including commodity markets, security exchanges, banks credit facilities and insurance companies
  • D. Increasing market monopolies and oligopolies to help producers

Explanation

Public policy can support private enterprise through research, infrastructure, and financial or commodity markets. Deliberately increasing monopolies and oligopolies restricts competition and is not a general private-sector promotion policy.

Written and checked by , editorLast updated
Report an error

The more specific you are, the faster it gets fixed. A source beats an opinion.

Prefer email? [email protected]

About Public Finance

Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.

Practise Public Finance

406 free Public Finance MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Discussion

Stuck on an option, or know a faster way to get there? Ask or explain it here.

No comments yet. Be the first to explain this one.

Exams that ask Economics questions like this

Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

More Public Finance questions