Question

Explain why the government has taken up the public sector activities

Answer 1

Explanation:

Reasons why government has taken up public sector activities are :

(i) These activities require^huge amount of money which is beyond the capacity of private sector.

(ii) Private sector may charge high rate for their use.

(iii) It is difficult to collect money from thousands of people who use these facilities.

(iv) Sometimes government in order to support the private sector has to take up the activities like selling electricity at generation cost.

(v) Spendingon health and education is necessary as it is the primary responsibility of the government.