A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2019 · Q181 Mark
A government is concerned that foreign-owned companies are responsible for a high proportion of the economy's output. Therefore it nationalises timber extraction, which is controlled by a foreign-owned company. What benefit will the economy gain from the change in ownership?
Aforestry workers will become the new owners
Bprofits will no longer be sent abroad to foreign shareholders
Csocial costs arising from forestry will be eliminated
Dthe market for timber will become more competitive
✓ Correct answer
B: profits will no longer be sent abroad to foreign shareholders
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