The arguments for and against the privatisation of state-owned enterprises
Privatisation means the government sells a state-owned industry to private owners. Supporters say private firms perform better; critics say profit motives can harm consumers and workers.
Real World
When the UK government sold British Telecom in 1984, BT shifted from a sluggish state monopoly to a profit-driven company; over the next decade, call prices fell and service quality improved as competition gradually increased.
Exam Focus
For 'evaluate' questions, always weigh a privatisation benefit against a specific counterargument — examiners reward developed two-sided analysis.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
How well did you know this?