Unit 10

Question 0

Public corporations previously part of the private sector which were taken into state ownership

Answer 0

Nationalized industries

Question 1

Goods which are under-provided by private sector businesses

Answer 1

Merit goods

Question 2

A situation where production costs will be lower if one form is allowed to exists on its own in the industry, due to the existence of huge economies of scale

Answer 2

Natural monopoly

Question 3

The transfer of public sector resources to the private sector

Answer 3

Privatization

Question 4

A scheme where private businesses build hospitals and schools, for example, funded by government

Answer 4

Private Finance Initiative (PFI)

Question 5

Organizations set up by law to run services on behalf of government

Answer 5

Public corporations

Question 6

Goods where consumption by one person does not reduce the amount available to others and, once provided, all individuals will benefit

Answer 6

Public goods

Question 7

Business organizations which are owned or controlled by central or local government, or public corporations

Answer 7

Public Sector

Question 8

QUANGOs

Answer 8

Quasi Autonomous Non-Governmental Organizations