Nationalisation occurs when ?
Correct answer: C. The government takes control of an industry
- A. The government sells assets to a the private sector
- B. The government bans a product
- C. The government takes control of an industry
- D. The government taxes a product to a raise its price
Explanation
Nationalisation transfers ownership or control of a privately operated industry to the government. Selling government assets to private firms is the opposite process, called privatisation.
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Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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