Privatization of a state-owned monopoly can
A)allow governments to capture future monopoly earnings.
B)allow governments to be more efficient.
C)reduce bribery of government officials.
D)increases chances of reelection for politicians.

Question

Quizplus · Accepted Answer

Privatization of a state-owned monopoly allows the government to capture future monopoly earnings through the sale of shares in the new private company. This can bring in significant revenue for the government and reduce the burden on taxpayers. Privatization can also increase competition, improve efficiency, and reduce corruption by reducing the role of government in the economy. However, privatization may also lead to job loss and reduced access to services for certain groups if not managed properly.

Privatization of a State-Owned Monopoly Can