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Which sector of a mixed economy is set up by the State mainly for the welfare of the community rather than for profit?
APublic sector
BPrivate sector
CCombined sector
DHousehold sector
Answer & Solution
Correct answer: A. Public sector
1. A mixed economy has private, public and combined sectors.
2. The private sector runs on profit motive and the combined sector is a joint venture.
3. The public sector is established by the State and is not primarily profit-oriented but welfare-oriented.
4. Hence the welfare-driven, non-profit sector is the public sector; the household sector is not one of the three industry sectors named.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 1 Unit II "Basic Problems of an Economy and Role of Price Mechanism", p.7_
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