Which of the following is a good example of privatization?
A) nationalizing privately owned oil fields
B) having price floors on products
C) turning government enterprises into private enterprises
D) increasing payroll taxes

Question

Which of the following is a good example of privatization?  
A) nationalizing privately owned oil fields 
B) having price floors on products 
C) turning government enterprises into private enterprises 
D) increasing payroll taxes

Quizplus · Accepted Answer

Privatization means transferring the ownership and control of a government-owned enterprise to a private sector entity. Turning government enterprises into private enterprises is a good example of privatization. Nationalizing privately owned oil fields (A) is the opposite of privatization and involves government taking over private property, which is not privatization. Having price floors (B) and increasing payroll taxes (D) are not examples of privatization.

Which of the Following Is a Good Example of Privatization