WAEC Economics 2018 Theory — Question 4
Question 4 of 8 from the West African Examinations Council (WAEC) Economics 2018 Theory paper, with the correct answer and a full explanation.
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4.(a) What are state-owned enterprises? (b) State any three reasons for the establishment of state owned enterprises. (c) Highlight any four problems associated with state owned enterprises.
Model answer
(a) State-owned enterprises (public corporations) are institutions established by an Act of Parliament, funded with taxpayers' money, and owned and managed by the state. (b) Reasons for establishment: to provide employment opportunities to citizens; to provide social services at affordable prices to citizens; to improve the general welfare of the populace. (c) Problems: mismanagement and corruption; inefficiency of staff; politicisation of policies; inadequate government funding.
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