Privatisation Quiz

How does privatisation affect workers?

• Increased job security

• Decreased competition

• Potential job losses

• Guaranteed wage increases

What is a potential effect of privatisation on government regulation?

• Increased regulation

• Decreased regulation

• No change in regulation

• Regulation becomes stricter

What is a consequence of nationalised industries being inefficient?

• They generate high profits

• They often make losses

• They expand rapidly

• They reduce costs

What is a potential effect of privatisation on costs?

• It increases costs

• • Profit incentive as private companies often have stronger profit incentives to cut costs.

• It fixes costs

• It reduces costs

What could be a negative effect of mass redundancies on companies?

• Increased profits

• Loss of experienced staff

• More innovation

• Higher customer satisfaction

How might workers feel pressured due to job losses?

• To decrease productivity

• To improve their efficiency

• To demand higher wages

• To work fewer hours

What is a potential benefit of increased competition for products?

• Less innovation

• More innovation

• Higher prices

• Reduced quality

What might businesses do to meet customer needs?

• Reduce product quality

• Provide good quality products

• Increase prices

• Limit customer service

What is the effect of privatization on foreign investment?

• Decreases foreign investment

• Increases foreign investment

• Eliminates foreign investment

• Has no effect on foreign investment

How can privatization affect taxpayers?

• It reduces their tax burden

• It has no effect on them

• It could increase expenses due to advertising costs

• It guarantees better services