A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2016 · Q181 Mark
A government decides to privatise a nationalised company by transferring ownership directly to its managers and workers. What is its most likely motive for this decision?
Ato increase the amount of innovation
Bto increase the level of competition
Cto increase the level of incentive
Dto increase the scale of production
✓ Correct answer
C: to increase the level of incentive
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