A Level Economics AQA Practice Exam

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Prepare for the A Level Economics AQA Exam with our interactive quiz. Test your knowledge with multiple choice questions and detailed explanations. Equip yourself with the tools needed for success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What does privatisation involve?

The transfer of private businesses to the public sector
The sale of public sector organizations to the private sector
The deregulation of private enterprises
The establishment of public ownership of resources

The correct answer is: The sale of public sector organizations to the private sector

Privatisation involves the sale of public sector organizations to the private sector. This process typically entails transferring ownership and control of state-run enterprises, services, or assets into private hands. The rationale behind privatisation often includes increasing efficiency, fostering competition, and reducing government burden in managing industries or services that can potentially be run better by private entities. In contrast, the other choices describe different concepts. The transfer of private businesses to the public sector pertains to nationalization, while deregulation involves removing restrictions on private enterprises rather than transferring ownership. Establishing public ownership of resources is not aligned with privatisation but rather indicates a move towards greater state control. Thus, the correct answer reflects the essence of privatisation as a transfer of ownership from public to private hands.