Which of the Following Is an Example of Privatization

question 57

Multiple Choice

Which of the following is an example of privatization?

• A) The federal government contracts with a private firm to operate a youth detention center.
• B) A private business receives funding from the government to buy fair-trade products.
• C) The government requires a hospital to purchase liability insurance through a government agency.
• D) A public library receives a grant from the government to update its civics book collection.
• E) A private business is able to reduce its overall spending by outsourcing some production to a government agency.

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Definitions:

Demand for Tablets

The consumer's desire and willingness to pay for tablet computers, influenced by factors such as price, technology, and consumer preferences.

Supply of Tablets

Refers to the total quantity of tablet computers that producers are willing and able to sell at a given price level in a given time period.

Equilibrium Price

Equilibrium price is the price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Welfare Economics

A branch of economics that focuses on the optimal allocation of resources and goods and aims to evaluate the economic well-being of individuals and society.