Question 42
Government and BusinessA disadvantage of privatization is that
- A.there is decline in the supply of goods.
- B.there is less efficiency in the production of goods.
- C.public interest outweighs the profit motive.
- D.income is unevenly distributed.
Show the answer and explanation
Answer: D (income is unevenly distributed.)
Explanation
Privatization puts public assets in the hands of a few rich buyers, widening the gap between rich and poor.