GCE Commerce 2023 Objective — Question 40
Question 40 of 50 from the General Certificate of Education (GCE) Commerce 2023 Objective paper, with the correct answer and a full explanation.
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Income inequality in many countries can be worsened by privatization mainly because it can (a) reduce the wealth of the government (b) transfer wealth from the public sector to a small number of private individuals or organizations (c) increase the supply of goods (d) reduce unemployment
- A. reduce the wealth of the government
- B. transfer wealth from the public sector to a small number of private individuals or organizationsCorrect
- C. increase the supply of goods
- D. reduce unemployment
Explanation
Privatization can exacerbate income inequality by transferring wealth from the public sector to private individuals or organisations, concentrating wealth among a smaller group.
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