A Level Economics (9708)•9708/12/M/J/21

Explanation
Nationalization eliminates private ownership
Steps:
- Nationalization transfers industry ownership from private shareholders to the state.
- Private shareholders lose their stake, ending their financial returns.
- State control may continue or alter operations like employment, pricing, and efficiency measures.
- Only shareholder dividends are inherently terminated by ownership change.
Why A is correct:
- Nationalization seizes private assets, removing shareholders' rights to dividends as per property law definitions of ownership transfer.
Why the others are wrong:
- B: State-run industries can still experience job losses to improve efficiency or cut costs.
- C: Prices may rise under nationalization due to ongoing economic pressures like inflation.
- D: Unprofitable factories can close to ensure overall industry viability, regardless of ownership.
Final answer: A
Topic: Methods and effects of government intervention in markets
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