A Level Economics (9708)•9708/13/M/J/19

Explanation
Identifying the non-supportive argument for privatization
Steps:
- Define privatization as transferring state-owned assets to private ownership to enhance efficiency and market dynamics.
- Evaluate each option to determine if it presents a benefit or advantage of privatization.
- Identify arguments that promote efficiency, competition, or revenue as supportive.
- Select the option that highlights a drawback, indicating it's not in support.
Why C is correct:
- Privatization arguments focus on benefits like efficiency and competition; C describes exploitation as a potential negative outcome, which is a criticism, not a support, per economic theory on market failures.
Why the others are wrong:
- A supports by promoting resource allocation efficiency through private incentives.
- B supports by fostering competition, leading to better services and innovation.
- D supports by generating government funds for public spending or debt reduction.
Final answer: C
Topic: Government policies to achieve efficient resource allocation and correct market failure
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