JAMB Economics 2019 Objective — Question 29
Question 29 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2019 Objective paper, with the correct answer and a full explanation.
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The main reason for the current programme of privatization and commercialization of public enterprises in Nigeria is to
- A. reduce public expenditure
- B. encourage efficiency in the performance of such enterprisesCorrect
- C. reduce the total number of public enterprises
- D. raise the prices of goods and services they produce
Explanation
Most government-owned enterprises are known for inefficiency due to lack of proper monitoring and control. Privatization (transfer of ownership and control to the private sector) and commercialization (turning a government establishment into a profit-making enterprise) are expected to encourage efficiency.
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