Question

Identify, which of the following correctly defines liberalization.

• A. Outright sale of part of shares of Public Sector Undertakings (PSUs)
• B. Increased integration with the rest of the world
• C. Removal of restrictions imposed by government on different sectors of the economy
• D. Focus on import substitution

Hint:

Liberalization involves reducing government intervention, allowing market forces to operate more freely and encouraging investment.

Answer 1

The Correct Option is C

Liberalization refers to the process of reducing or eliminating government regulations and restrictions in different sectors of the economy. It aims to promote economic growth by encouraging more private sector participation and fostering competition.
The option that defines this process is the removal of restrictions imposed by the government on various sectors of the economy.