Based on ownership firms are classified into public and private sectors 1 Activities in the private ...........

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Based on ownership firms are classified into public and private sectors.

1. Activities in the private sector are guided by the motive to earn profits.

2. The purpose of the public sector is not to earn profits.

Which of the statements given above is/are correct?

1 only

2 only

both 1 and 2

neither 1 nor 2

Explanation:

Class 10 - Book Name- Understanding Economic Development - Pg. No. 33
Explanation
Activities in the private sector are guided by the motive to earn profits. To get such services we have to pay money to these individuals and companies. The purpose of the public sector is not just to earn profits. Governments raise money through taxes and other ways to meet expenses on the services rendered by it. Modern day governments spend on a whole range of activities.