hot topic: government intervention Flashcards by Andriy VALKOVYCH | Brainscape

Q

what are the pros for nationalisation(4)

A

acts in favour of public interest(profit is reinvested e.g. public transport and healthcare)
increased workers rights(less exploitation and minimum wages)
regulate natural monopolies
reduced cost cutting(38 people killed in a privatised rail industry by 1999)

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

what are the cons for nationalisation(3)

A

inefficiencies(less quality, more waste)
government interference(raisnig taxes as a result of excess employment)
reduced competition(potentially higher prices, and reduced quality)

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

what are windfall taxes

A

taxes which are charged to companies that experience above-average supernormal profits
usually as a result of external factors(NOT CAUSED BY BUSINESS)

How well did you know this?

1

Not at all

2

3

4

5

Perfectly