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Passage -2
It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and Y. The rule has to be worked out to make sure that the oil-marketing can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual relations of anti-trust and other competition laws).
 
Q.Consider the following statements:
According to the passage, private oil companies re-enter the oil producing market if
1. a transparent rule-based petrol pricing exists
. 2. There is no government interference in the oil producing market
. 3. subsidies are given by the government.
4. regulations of anti-trust are removed .
Which of the statements given above are correct?
  • a)
    1 and 2
  • b)
    2 and 3
  • c)
    3 and 4
  • d)
    2 and 4
Correct answer is option 'A'. Can you explain this answer?
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Explanation:

Correct Answer: a) 1 and 2

Explanation:

Statement 1: According to the passage, private oil companies re-enter the oil producing market if a transparent rule-based petrol pricing exists. This is true as the passage suggests that once a transparent formula for petrol pricing is established, private companies will be more inclined to re-enter the market.

Statement 2: According to the passage, private oil companies re-enter the oil producing market if there is no government interference in the oil producing market. This is true as the passage mentions that once the rule for petrol pricing is announced, there should be no interference by the government, which will encourage private companies to participate.

Therefore, both statements 1 and 2 are correct based on the information provided in the passage.
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Passage - 2Net profits are only 2.2% of their total assets for central public sector undertakings, lower than for the private corporate sector. While the public sector or the State-led entrepreneurship played an important role in triggering Indias industrialization, our evolving development needs, comparatively less-than-satisfactory performance of the public sector enterprises, the maturing of our private sector, a much larger social base now available for expanding entrepreneurship and the growing institutional capabilities to enforce competition policies would suggest that the time has come to review the role of public sector.What should the portfolio composition of the government be? It should not remain static all times. The airline industry works well as a purely private affair. At the opposite end, rural roads, whose sparse traffic makes tolling unviable, have to be on the balance-sheet of the State. If the government did not own rural roads, they would not exist.Similarly, public health capital in our towns and cities will need to come from the public sector. Equally, preservation and improvement of forest cover will have to be a new priority for the public sector assets.Take the example of steel. With near-zero tariffs, India is a globally competitive market for the metal. Indian firms export steel into the global market which demonstrates there is no gap in technology. Indian companies are buying up global steel companies, which shows there is no gap in capital availability. Under these conditions, private ownership works best.Private ownership is clearly desirable in regulated industries, ranging from, finance to infrastructure, where a government agency performs the function of regulation and multiple competing firms are located in the private sector. Here, the simple and clean solution - government as the umpire and the private sector as the players is what works best. In many of these industries, we have a legacy of government ownership, where productivity tends to be lower, fear of bankruptcy is absent, and the risk of asking for money from the tax payer is ever present. There is also the conflict of interest between government as an owner and as the regulator.The formulation and implementation of competition policy will be more vigorous and fair if government companies are out of action.Q.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?

Passage - 2Net profits are only 2.2% of their total assets for central public sector undertakings, lower than for the private corporate sector. While the public sector or the State-led entrepreneurship played an important role in triggering Indias industrialization, our evolving development needs, comparatively less-than-satisfactory performance of the public sector enterprises, the maturing of our private sector, a much larger social base now available for expanding entrepreneurship and the growing institutional capabilities to enforce competition policies would suggest that the time has come to review the role of public sector.What should the portfolio composition of the government be? It should not remain static all times. The airline industry works well as a purely private affair. At the opposite end, rural roads, whose sparse traffic makes tolling unviable, have to be on the balance-sheet of the State. If the government did not own rural roads, they would not exist.Similarly, public health capital in our towns and cities will need to come from the public sector. Equally, preservation and improvement of forest cover will have to be a new priority for the public sector assets.Take the example of steel. With near-zero tariffs, India is a globally competitive market for the metal. Indian firms export steel into the global market which demonstrates there is no gap in technology. Indian companies are buying up global steel companies, which shows there is no gap in capital availability. Under these conditions, private ownership works best.Private ownership is clearly desirable in regulated industries, ranging from, finance to infrastructure, where a government agency performs the function of regulation and multiple competing firms are located in the private sector. Here, the simple and clean solution - government as the umpire and the private sector as the players is what works best. In many of these industries, we have a legacy of government ownership, where productivity tends to be lower, fear of bankruptcy is absent, and the risk of asking for money from the tax payer is ever present. There is also the conflict of interest between government as an owner and as the regulator.The formulation and implementation of competition policy will be more vigorous and fair if government companies are out of action.Q.The author prefers government as the umpire and private sector as players because

Passage - 2Net profits are only 2.2% of their total assets for central public sector undertakings, lower than for the private corporate sector. While the public sector or the State-led entrepreneurship played an important role in triggering Indias industrialization, our evolving development needs, comparatively less-than-satisfactory performance of the public sector enterprises, the maturing of our private sector, a much larger social base now available for expanding entrepreneurship and the growing institutional capabilities to enforce competition policies would suggest that the time has come to review the role of public sector.What should the portfolio composition of the government be? It should not remain static all times. The airline industry works well as a purely private affair. At the opposite end, rural roads, whose sparse traffic makes tolling unviable, have to be on the balance-sheet of the State. If the government did not own rural roads, they would not exist.Similarly, public health capital in our towns and cities will need to come from the public sector. Equally, preservation and improvement of forest cover will have to be a new priority for the public sector assets.Take the example of steel. With near-zero tariffs, India is a globally competitive market for the metal. Indian firms export steel into the global market which demonstrates there is no gap in technology. Indian companies are buying up global steel companies, which shows there is no gap in capital availability. Under these conditions, private ownership works best.Private ownership is clearly desirable in regulated industries, ranging from, finance to infrastructure, where a government agency performs the function of regulation and multiple competing firms are located in the private sector. Here, the simple and clean solution - government as the umpire and the private sector as the players is what works best. In many of these industries, we have a legacy of government ownership, where productivity tends to be lower, fear of bankruptcy is absent, and the risk of asking for money from the tax payer is ever present. There is also the conflict of interest between government as an owner and as the regulator.The formulation and implementation of competition policy will be more vigorous and fair if government companies are out of action.Q.According to the passage, rural roads should be in the domain of public sector only. Why?

Passage - 2Net profits are only 2.2% of their total assets for central public sector undertakings, lower than for the private corporate sector. While the public sector or the State-led entrepreneurship played an important role in triggering Indias industrialization, our evolving development needs, comparatively less-than-satisfactory performance of the public sector enterprises, the maturing of our private sector, a much larger social base now available for expanding entrepreneurship and the growing institutional capabilities to enforce competition policies would suggest that the time has come to review the role of public sector.What should the portfolio composition of the government be? It should not remain static all times. The airline industry works well as a purely private affair. At the opposite end, rural roads, whose sparse traffic makes tolling unviable, have to be on the balance-sheet of the State. If the government did not own rural roads, they would not exist.Similarly, public health capital in our towns and cities will need to come from the public sector. Equally, preservation and improvement of forest cover will have to be a new priority for the public sector assets.Take the example of steel. With near-zero tariffs, India is a globally competitive market for the metal. Indian firms export steel into the global market which demonstrates there is no gap in technology. Indian companies are buying up global steel companies, which shows there is no gap in capital availability. Under these conditions, private ownership works best.Private ownership is clearly desirable in regulated industries, ranging from, finance to infrastructure, where a government agency performs the function of regulation and multiple competing firms are located in the private sector. Here, the simple and clean solution - government as the umpire and the private sector as the players is what works best. In many of these industries, we have a legacy of government ownership, where productivity tends to be lower, fear of bankruptcy is absent, and the risk of asking for money from the tax payer is ever present. There is also the conflict of interest between government as an owner and as the regulator.The formulation and implementation of competition policy will be more vigorous and fair if government companies are out of action.Q.The portfolio composition of the government refers to

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Passage -2It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and Y. The rule has to be worked out to make sure that the oil-marketing can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual relations of anti-trust and other competition laws).Q.Consider the following statements:According to the passage, private oil companies re-enter the oil producing market if 1. a transparent rule-based petrol pricing exists. 2. There is no government interference in the oil producing market. 3. subsidies are given by the government.4. regulations of anti-trust are removed .Which of the statements given above are correct?a)1 and 2b)2 and 3c)3 and 4d)2 and 4Correct answer is option 'A'. Can you explain this answer?
Question Description
Passage -2It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and Y. The rule has to be worked out to make sure that the oil-marketing can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual relations of anti-trust and other competition laws).Q.Consider the following statements:According to the passage, private oil companies re-enter the oil producing market if 1. a transparent rule-based petrol pricing exists. 2. There is no government interference in the oil producing market. 3. subsidies are given by the government.4. regulations of anti-trust are removed .Which of the statements given above are correct?a)1 and 2b)2 and 3c)3 and 4d)2 and 4Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Passage -2It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and Y. The rule has to be worked out to make sure that the oil-marketing can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual relations of anti-trust and other competition laws).Q.Consider the following statements:According to the passage, private oil companies re-enter the oil producing market if 1. a transparent rule-based petrol pricing exists. 2. There is no government interference in the oil producing market. 3. subsidies are given by the government.4. regulations of anti-trust are removed .Which of the statements given above are correct?a)1 and 2b)2 and 3c)3 and 4d)2 and 4Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Passage -2It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and Y. The rule has to be worked out to make sure that the oil-marketing can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual relations of anti-trust and other competition laws).Q.Consider the following statements:According to the passage, private oil companies re-enter the oil producing market if 1. a transparent rule-based petrol pricing exists. 2. There is no government interference in the oil producing market. 3. subsidies are given by the government.4. regulations of anti-trust are removed .Which of the statements given above are correct?a)1 and 2b)2 and 3c)3 and 4d)2 and 4Correct answer is option 'A'. Can you explain this answer?.
Solutions for Passage -2It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and Y. The rule has to be worked out to make sure that the oil-marketing can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual relations of anti-trust and other competition laws).Q.Consider the following statements:According to the passage, private oil companies re-enter the oil producing market if 1. a transparent rule-based petrol pricing exists. 2. There is no government interference in the oil producing market. 3. subsidies are given by the government.4. regulations of anti-trust are removed .Which of the statements given above are correct?a)1 and 2b)2 and 3c)3 and 4d)2 and 4Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Passage -2It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and Y. The rule has to be worked out to make sure that the oil-marketing can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual relations of anti-trust and other competition laws).Q.Consider the following statements:According to the passage, private oil companies re-enter the oil producing market if 1. a transparent rule-based petrol pricing exists. 2. There is no government interference in the oil producing market. 3. subsidies are given by the government.4. regulations of anti-trust are removed .Which of the statements given above are correct?a)1 and 2b)2 and 3c)3 and 4d)2 and 4Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Passage -2It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and Y. The rule has to be worked out to make sure that the oil-marketing can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual relations of anti-trust and other competition laws).Q.Consider the following statements:According to the passage, private oil companies re-enter the oil producing market if 1. a transparent rule-based petrol pricing exists. 2. There is no government interference in the oil producing market. 3. subsidies are given by the government.4. regulations of anti-trust are removed .Which of the statements given above are correct?a)1 and 2b)2 and 3c)3 and 4d)2 and 4Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Passage -2It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and Y. The rule has to be worked out to make sure that the oil-marketing can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual relations of anti-trust and other competition laws).Q.Consider the following statements:According to the passage, private oil companies re-enter the oil producing market if 1. a transparent rule-based petrol pricing exists. 2. There is no government interference in the oil producing market. 3. subsidies are given by the government.4. regulations of anti-trust are removed .Which of the statements given above are correct?a)1 and 2b)2 and 3c)3 and 4d)2 and 4Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Passage -2It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and Y. The rule has to be worked out to make sure that the oil-marketing can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual relations of anti-trust and other competition laws).Q.Consider the following statements:According to the passage, private oil companies re-enter the oil producing market if 1. a transparent rule-based petrol pricing exists. 2. There is no government interference in the oil producing market. 3. subsidies are given by the government.4. regulations of anti-trust are removed .Which of the statements given above are correct?a)1 and 2b)2 and 3c)3 and 4d)2 and 4Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Passage -2It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and Y. The rule has to be worked out to make sure that the oil-marketing can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual relations of anti-trust and other competition laws).Q.Consider the following statements:According to the passage, private oil companies re-enter the oil producing market if 1. a transparent rule-based petrol pricing exists. 2. There is no government interference in the oil producing market. 3. subsidies are given by the government.4. regulations of anti-trust are removed .Which of the statements given above are correct?a)1 and 2b)2 and 3c)3 and 4d)2 and 4Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.
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