Explain Both Sides of the Issue of the Privatization of Government

question 24

Essay

Explain both sides of the issue of the privatization of government. Provide examples of ways privatization might make government more efficient and some of the unintended consequences of privatization.

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Definitions:

Form Hypothesis

The process of developing a proposed explanation for a phenomenon, made as a starting point for further investigation.

Circular-Flow Model

A diagram that traces the flow of resources, products, income, and revenue among economic decision makers.

Households

Individuals or groups of people living together as a single unit, making economic decisions regarding consumption, savings, and labor supply.

Resource Market

A market where resources (like labor, capital, and raw materials) used to produce goods and services are bought and sold.