Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

Governments lower their holdings of assets through privatisation. They raise their holdings of assets through nationalisations. The diagram illustrates worldwide sales of state-owned assets and worldwide government purchases of private stock between 1988 and 2013 in US$ billion. What conclusion can be drawn from the diagram?

  • ABy the end of the period the private sector owned more assets than the state sector.
  • BOver the period governments raised more revenue from privatisations than they spent on nationalisations.
  • CThe first year in which nationalisations exceeded privatisations was 2007.
  • DThe greatest annual increase in government ownership of assets was in 2009.

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