Moderate

Which of the following is not a public policy to promote the private sector ?

Correct answer: D. Increasing market monopolies and oligopolies to help producers

  • A. Investigating development potential through scientific and market research and natural resources surveys
  • B. Providing adequate infrastructure for public and private agencies
  • C. Creating markets, including commodity markets, security exchanges, banks credit facilities and insurance companies
  • D. Increasing market monopolies and oligopolies to help producers

Explanation

Public policy can support private enterprise through research, infrastructure, and financial or commodity markets. Deliberately increasing monopolies and oligopolies restricts competition and is not a general private-sector promotion policy.

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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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