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

Government intervention in markets — practice question

At present, a country’s railways are operated by private firms. It has been proposed that the government should nationalise the railways. What could be one reason for this?

  • Ato control prices of railway services
  • Bto encourage competition in railway services
  • Cto increase the profit incentive
  • Dto provide jobs for local people

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