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

Maximum and minimum prices — practice question

If an industry is owned by the state and run by the state, which of the following would not be a reason for privatising it?

  • 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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