passwella.
Menu

JAMB Commerce 1998 Question 39

Question 39

Government and Business

Which of the following is a disadvantage of nationalization?

  1. A.It promotes poor economic planning
  2. B.The cost of services is not determined by market forces
  3. C.It may lead to rationalization of resources
  4. D.The development of local skills and technology is retarded.
Show the answer and explanation

Answer: D (The development of local skills and technology is retarded.)

Explanation

Nationalised firms lack competition and incentive, which can hold back the development of local skills and technology.