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WAEC Commerce 2021 Objective — Question 42

Question 42 of 50 from the West African Examinations Council (WAEC) Commerce 2021 Objective paper, with the correct answer and a full explanation.

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A disadvantage of privatization is that

  • A. there is reduction in the quality of goods
  • B. there is inefficiency in the supply of goods
  • C. the existence of monopoly is high
  • D. the profit motive outweighs public interestCorrect

Explanation

A disadvantage of privatization is that the new owner's profit motive outweighs public interest and the promotion of welfare.

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