The Primary Criticism of Privatization Is

question 33

Multiple Choice

The primary criticism of privatization is:

• A) it is not fair for the government to give business to some companies and not others.
• B) the system is too efficient thereby reducing the number of jobs available.
• C) that provision of some services should be based on what is best for society, not profitability.
• D) not enough systems are being privatized.

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Definitions:

Indirect Tax

A tax collected by an intermediary from the person who bears the ultimate economic burden of the tax; examples include sales taxes and value-added taxes.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits for retirees, disabled individuals, and survivors of deceased workers.

Personal Income Tax

A tax levied on individuals' earnings, including wages, salaries, and investment income, often progressive in nature.

Federal Expenditures

The spending by the federal government, including spending on defense, education, public welfare, and infrastructure projects.