A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2020 · Q141 Mark
A government decides to privatise a state-owned company. What should the government do to try to ensure that this will result in an improvement in efficiency?
Aallocate vouchers to all citizens entitling them to a share in the ownership of the company
Bencourage competition
Cimpose a maximum profit margin
Dincrease business tax rates
✓ Correct answer
B: encourage competition
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