Question

On which one of the following bases are public and private sectors classified?

• A. Employment conditions
• B. Nature of economic activity
• C. Ownership of enterprises
• D. Number of workers employed in enterprises

Hint:

The public sector is government-owned, while the private sector is privately owned. This distinction is crucial in understanding how resources and services are managed in an economy.

Answer 1

The Correct Option is C

The classification of the economy into the public and private sectors is primarily based on the ownership of enterprises .
- Public Sector : This sector includes enterprises that are owned and operated by the government . Examples include public utilities, government agencies, and state-owned enterprises like Indian Railways , ISRO , etc.
- Private Sector : This sector consists of enterprises that are owned and operated by private individuals or corporations . Examples include companies like Reliance Industries , Tata Group , and Apple .
The classification is not based on employment conditions (A), nature of economic activity (B), or the number of workers employed (D), as these factors could apply to both public and private enterprises. The key distinguishing feature between these sectors is ownership .