Reasons for Government Involvement in Business
CMAT 2024 · Innovation & Entrepreneurship · Medium · Government Policy
Given below are two statements : Statement I: Changing competition in market place is the primary reason for govt involvement in business globally. Statement II: Increase in cost of production is the primary reason for govt in business 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 II is correct
C
Explanation
Statement I is correct as governments intervene primarily to regulate changing competitive landscapes, prevent monopolies, and ensure fair competition. Statement II is incorrect as rising production costs are an internal business issue, not the main driver of global government policy.
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