A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2021 · Q141 Mark
A nationalised industry is privatised. Assuming there is no change in the output of the industry in the short run, what are the direct effects of the change?
Asize of public sector: decreases; proportion of industry output entering the market: increases
Bsize of public sector: decreases; proportion of industry output entering the market: no change
Csize of public sector: no change; proportion of industry output entering the market: increases
Dsize of public sector: no change; proportion of industry output entering the market: no change
✓ Correct answer
B: size of public sector: decreases; proportion of industry output entering the market: no change
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