Question

Given below are two statements:
Statement I: People's attitudes have changed over the years leading to involvement of State (Government) in businesses globally.
Statement II: Increasing technicality is leading to State (Government) to make interventions in businesses globally.
In the light of the above statements, choose the most appropriate answer from the options given below:

• A. Both Statement I and Statement II are correct
• B. Both Statement I and Statement II are incorrect
• C. Statement I is correct but Statement II is incorrect
• D. Statement I is incorrect but Statement Il is correct

Answer 1

The Correct Option is B

Both claims are wrong because neither public opinion nor technological progress alone warrant government interference in enterprises. The main reasons for government intervention are socio-economic conditions, market inefficiencies, the need for regulation, and the need for public goods and services.