Privatization Boosts Competition and Choice

Steps:

• Identify privatization as transferring public assets to private ownership, aiming for efficiency.
• Recall that private firms compete in markets, unlike monopolistic public sectors.
• Evaluate impacts: competition expands options for consumers.
• Compare choices: select the most direct, positive outcome.

Why A is correct:

• Privatization ends public monopolies, fostering market competition that directly increases consumer choice through diverse products and services, per economic theory of competitive markets.

Why the others are wrong:

• B: Short-run employment often decreases as private firms cut costs for efficiency.
• C: Innovation increases with profit incentives in private sectors.
• D: Public goods remain government responsibilities; privatization focuses on marketable services.

Final answer: A