Economics (AS & A Level) · May / June 2024 · Paper 32 · Question 12
9708Government policies to achieve efficient resource allocation and correct market failure
The table shows the annual percentage change in the output per worker employed for four nationalised industries before and after privatisation. | nationalised industry | before privatisation % | after privatisation % | |---|---|---| | railways | –4 | 2 | | electricity supply | 7 | 9 | | shipbuilding | 4 | –1 | | telecommunications | 6 | 6 | What can be concluded about the effect of privatisation?
- AEmployment fell in the railway industry.
- BEmployment was unchanged in the telecommunications industry.
- COutput was greatest in the electricity supply industry.
- DWorkers became less efficient in the shipbuilding industry.
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Correct answer: D. Workers became less efficient in the shipbuilding industry.
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