Economics 9708 · AS & A Level · Government intervention in markets

Government intervention in markets — practice question

Which situation would not usually be seen as a strong reason for an industry to be nationalised?

  • AIn the private sector, the industry would cause significant inequalities of supply between different areas of the country.
  • BThe industry would allow firms outside of the industry to enter easily.
  • CThe industry would be unprofitable as a private enterprise but generates large benefits for the rest of society.
  • DThe industry would experience such economies of scale that it can support only one firm.

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