Which of the following is an example of privatization?
A) The federal government contracts with a private firm to operate a youth detention center.
B) A private business receives funding from the government to buy fair-trade products.
C) The government requires a hospital to purchase liability insurance through a government agency.
D) A public library receives a grant from the government to update its civics book collection.
E) A private business is able to reduce its overall spending by outsourcing some production to a government agency.

Question

Quizplus · Accepted Answer

Privatization refers to the transfer of ownership or control of a public service or asset from the government to a private entity. In this case, the federal government contracting with a private firm to operate a youth detention center is an example of privatization since the government is choosing to have a private entity operate a service that it previously provided.

Which of the Following Is an Example of Privatization