Nationalization promotes efficient resource allocation

Steps:

• Recall nationalization: government takeover of private industries, often for public interest like utilities.
• Identify key justification: preventing competition in natural monopolies to avoid redundant infrastructure.
• Evaluate options: match against arguments favoring state control over private markets.
• Select B as it directly supports avoiding duplication in essential services.

Why B is correct:

• Nationalization centralizes control in natural monopolies (e.g., railways), eliminating duplicate investments per economic theory of resource optimization.

Why the others are wrong:

• A: Supports privatization by emphasizing market-driven efficiency.
• C: Favors private ownership where shareholders enforce discipline.
• D: Promotes privatization through broader public investment in shares.

Final answer: B