According to the passage, under the globalization, government interventions are viewed as processes leading to
adistortions and inefficiency in the economy.
boptimum use of resources.
cmore profitability to industries.
dfree play of market forces with regard to industries.
AnswerUPSC’s answer is (a).
The author explains that globalization's underlying thinking wants markets to decide prices, output and distribution, and regards state intervention as something that warps the economy and makes it less efficient. So the view of intervention is that it causes distortion and inefficiency. Free play of market forces is the goal of globalization, not the way it judges intervention.
Why each option is right or wrong
(a) Right. Interventions are seen as creating distortions and inefficiency.
(b) Optimum use of resources is what markets, not interventions, are expected to deliver.
(c) More profitability is not what the passage says interventions lead to.
(d) Free play of market forces is the aim of globalization, not the view of interventions.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
