UPSC Prelims 2014 · CSAT
Question 55: Reading Comprehension


According to the passage, what is/are the reason/reasons for saying that the time has come to review the role of public sector ?
- 1.Now public sector has lost its relevance in the industrialization process.
- 2.Public sector does not perform satisfactorily.
- 3.Entrepreneurship in private sector is expanding.
- 4.Effective competition policies are available now.
Which of the statements given above is/are correct in the given context ?
AnswerUPSC’s answer is (c).
The author gives three grounds for rethinking the public sector's role: state-owned firms have performed poorly, the private sector has grown up and more people can now become entrepreneurs, and institutions are getting better at enforcing competition rules. The author also credits state-led enterprise with helping start India's industrialization, so it is not said to have lost relevance. Statements 2, 3 and 4 are therefore correct.
- 1. The passage says state enterprise helped launch industrialization; it never says that role is now irrelevant.
- 2. State firms have performed below expectations.
- 3. More people can now take up entrepreneurship.
- 4. Institutions are getting better at enforcing competition rules.
How you could have got this
- If you were sure statement 1 is not correct, (a) and (d) go: each of them includes 1.
What you needed to know: The passage says state enterprise helped launch industrialization; it never says that role is now irrelevant.
- Then, if you were sure statement 3 is correct, (b) goes: it leaves 3 out.
What you needed to know: More people can now take up entrepreneurship.
Only (c) is left. You didn’t need statements 2 or 4.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Statement 1 is not stated, and statements 2 and 4 are left out.
- (b) Performance is one of three reasons given.
- (c) Right. Performance, expanding private entrepreneurship and competition policy are the three reasons given.
- (d) Statement 1 is not stated.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2014, General Studies Paper II (CSAT), Series A. The paper on upsc.gov.in.