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WAEC Commerce 2020 Objective — Question 46

Question 46 of 50 from the West African Examinations Council (WAEC) Commerce 2020 Objective paper, with the correct answer and a full explanation.

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One of the disadvantages of privatization is that it

  • A. promotes business efficiency of staff
  • B. brings about economic decline
  • C. reduces government revenue
  • D. causes increase in the prices of productsCorrect

Explanation

When firms are privatised, prices will increase because the new investors always aim to maximise profit and cost controlling.

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