A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2016 · Q181 Mark
As part of a privatisation policy, a government deregulates bus services and sells off its public sector bus services to the private sector. What is least likely to occur following these changes?
ABus fares are increased.
BBus service companies invest in new buses.
CExtra bus service companies enter the market.
DLoss-making bus services are retained.
✓ Correct answer
D: Loss-making bus services are retained.
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