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A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2020 · Q141 Mark

Privatisation can be achieved by the sale of shares to the general public (public offers, PO) or by the direct sale to a private company (private sales, PS). The diagram shows privatisation transactions and revenue for the European Union between 1981 and 2012. [Figure 14.1] What can be concluded from the diagram?

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

AAny increase in the number of privatisations resulted in an increase in privatisation revenue.
BThe average revenue per privatisation was highest in 2000.
CThe main revenue from privatisation changed from public offers to private sales.
DThe number of privatisations and revenue raised peaked in the same year.

✓ Correct answer

C: The main revenue from privatisation changed from public offers to private sales.

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About this question

Topic
Government microeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, May/June 2020 Paper 1 Variant 2, question 14.

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