Problems And Objectives

Question 1

What are the problems of provision of goods and services

Answer 1

Lack of accountability, tax to corruption
Public needs not addressed
Pricing policy of state like subsidies
Inefficiency due to beaurocracy and corruption

Question 2

What is privatization

Answer 2

SOES being sold to the private sector

Opposite of nationalization

Question 3

What are positives of privatization

Answer 3

Efficiency

Profit motive

Question 4

What are negatives of privatization

Answer 4

Lack of public interest into decisions
Unemployment increase
Monopoly

Question 5

What are the objectives of the public sector

Answer 5

Price stability 
Inflation control 
BOP equilibrium 
Economic growth 
Full employment