Note AcademyNote Academy

Economics · Oct / Nov 2016 · Paper 13 · Question 16

2281Mixed economic system

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?

  1. Aby excluding all competition from foreign companies
  2. Bby imposing a tax on excess profits
  3. Cby introducing a quota system for imports of gas
  4. Dby removing price controls on gas

As printed in the paper

Show the answer

Correct answer: B. by imposing a tax on excess profits

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.