Economics (AS & A Level) · Oct / Nov 2022 · Paper 13 · Question 17
9708Government policies to achieve efficient resource allocation and correct market failure
If an industry is currently state-owned and state-run, what does not represent a reason for it being privatised?
- ADecisions will no longer be taken with political considerations in mind.
- BThe benefits of merit goods will be taken into account in decision-making.
- CIts owners would have more incentive to make it operate profitably.
- DThere will be greater incentives for managers to introduce modern technology.
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Correct answer: B. The benefits of merit goods will be taken into account in decision-making.
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