Introduction to Business EconomicsPYQ Dec 23Question 660 of 209
All Questions

Which type of industries are not primarily profit oriented but are set by state for the welfare of the community?

Options

ACombined sector
BPrivate sector
CIndependent sector
DPublic sector
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Correct Answer

✅ Option d — Public sector

All Options:

  • ACombined sector
  • BPrivate sector
  • CIndependent sector
  • DPublic sector

Detailed Solution & Explanation

• The question asks about industries that prioritize community welfare over profit, and are typically state-owned. This directly points to the definition of the public sector. • The public sector comprises organizations owned and operated by the government (state) at various levels (central, state, local). Their primary objective is to provide essential goods and services to the public, promote social welfare, and achieve broader economic and social goals, rather than maximizing profits. Examples include public healthcare, education, defense, and public utilities. • Option (D) Public sector is correct because it perfectly aligns with this description. These industries are established and funded by the state specifically to serve the community's needs and improve their well-being, often at subsidized rates or for free, rather than generating high profits. • Option (B) Private sector is incorrect because private sector industries are primarily owned by individuals or groups of individuals, and their main objective is to maximize profits for their owners or shareholders. While they may contribute to society, it's a secondary goal to profit generation. • Option (A) Combined sector (often referred to as joint sector) involves a partnership between the government and private enterprises. While it has elements of public interest, profit generation is still a significant motive for the private partners involved. • Option (C) Independent sector is not a standard economic classification for industries in this context. It might refer to non-profit organizations or NGOs, but the question specifically mentions industries "set by state," which points to government ownership.

About This Chapter: Introduction to Business Economics

Paper

Paper 4: Business Economics

Weightage

5%

Key Topics

Meaning, Scope, Price Mechanism

This chapter lays the groundwork for understanding Business Economics as a discipline. It covers the meaning, scope, and nature of economics — including key distinctions like Microeconomics vs Macroeconomics, Positive vs Normative economics, and the fundamental economic problem of scarcity. Students learn how businesses use economic principles for decision-making in a competitive marketplace.

View Official ICAI Syllabus

Exam Strategy Tip

Focus on definitions and distinctions between concepts. Questions often test whether you understand the difference between Micro and Macro, or Positive and Normative statements.

Related Comparison Tables

Microeconomics vs Macroeconomics: The Complete CA Foundation GuidePositive vs Normative Economics: Fact vs Opinion

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