The town of Springfield has an extensive public transportation system that has grown steadily over time in response to the city's changing needs. However, the town council realizes that it is not as efficient as it might be. The town decides to hire a private company to run its bus service, because a private company has greater incentives to run the system efficiently. This is an example of ________.

Question

Quizplus · Accepted Answer

This scenario describes privatization, which involves transferring ownership or control of a public service or organization to a private entity. The goal is often to improve efficiency or reduce costs, as private companies have the incentive to maximize profits.

The Town of Springfield Has an Extensive Public Transportation System