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O-LevelEconomicsGovernment and the macroeconomy2281/12 · Oct/Nov 2016 · Q161 Mark

A government decides to sell the monopoly supply of gas to households to a private firm. How could the government protect the interests of households after selling a large company to the private sector?

Aby excluding all competition from foreign companies
Bby imposing a tax on excess profits
Cby introducing a quota system for imports of gas
Dby removing price controls on gas

✓ Correct answer

B: by imposing a tax on excess profits

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, Oct/Nov 2016 Paper 1 Variant 2, question 16.

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