A-LevelEconomicsMicroeconomics: Government InterventionFeb/Mar 2020Paper 1 Q141 Mark
Which argument has often been used to justify the privatisation of state enterprises?
APrivate firms can produce the same outputs using fewer inputs.
BPrivate firms try to earn large profits.
CState enterprises are always monopolies which exploit consumers.
DState enterprises cannot operate without government subsidies.
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The correct answer is A. This question tests the candidate's understanding of microeconomics: government intervention within the Economicssyllabus. The examiner's mark scheme requires...
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