The arguments for and against the public ownership of firms and industries
Public ownership means the government owns and runs a firm or industry. This can serve society's needs, but it can also reduce the pressure on firms to keep costs low and innovate.
Real World
When the UK government renationalised Railtrack as Network Rail in 2002 after a series of fatal crashes, the argument was that safety and public interest could not be left to profit-driven management.
Exam Focus
Balance your answer: for every benefit of public ownership (e.g. natural monopoly control), counter with a cost (e.g. X-inefficiency from lack of competition).
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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