Economics · Oct / Nov 2016 · Paper 13 · Question 16
A government decides to sell the monopoly supply of gas to households to a private firm. How could the government protect the interests of households after selling a large company to the private sector?
- Aby excluding all competition from foreign companies
- Bby imposing a tax on excess profits
- Cby introducing a quota system for imports of gas
- Dby removing price controls on gas
As printed in the paper
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Correct answer: B. by imposing a tax on excess profits
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