After privatisation, a former state monopoly faces no new competitors and cuts its workforce sharply. Which assessment is most balanced?
Efficiency may improve, but consumers may not benefit if monopoly power remains
Efficiency must fall because private firms cannot reduce costs
Prices must fall because privatisation always creates competition
Unemployment cannot rise because ownership has changed
104 exam-style questions on AQA GCSE Economics 2.3 How the government manages the economy, covering 2.3.1a Fiscal policy and income and expenditure, 2.3.1b Fiscal policy and government objectives, 2.3.1c The government budget, 2.3.2a The meaning of monetary policy, 2.3.2b Uses of monetary policy, 2.3.3a Supply-side policies and their trade-offs, 2.3.3b Using supply-side policies, and 2.3.4 Policies to correct positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.