For And Against Public Ownership

Question 1

What is public ownership

Answer 1

When the government owns businesses

Question 2

Advantages of public ownership

Answer 2

• provides jobs which are usually protected
• finite resources such as water and energy can be guaranteed and controlled
• able to provide essential services to the whole country

Question 3

Disadvantages of private ownership

Answer 3

• higher costs to the government (higher taxes)
• inefficiency- public organisations are often inefficient due to diseconomies of scale
• government and political interferences may reduce efficiency of operations