3.3. Privatisation

Question 1

Definition of Privatisation

Answer 1

Transfer ownership in the opposite direction, from the public sector to the private sector

Question 2

Advantages of privatisation

Answer 2

1. Encourage people to feel that they were part of the economic system.
   - sale of assets of public sector to private sector can widen extent share of ownership
2. This would result in more efficient
3. Sale of assets can be revenue for government

Question 3

Disadvantages of privatisation

Answer 3

1. Greater efficiency of private sector may come at a cost of decrease in workers