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GOVERNMENT

JAMB 2017 - Question 6

Government 2017 JAMB Past Questions - Question 6: One of the demerits of the privatization of public corporation in Nigeria is

Choose the most appropriate option for the gap .

One of the demerits of the privatization of public corporation in Nigeria is

A: scarcity of goods and services

B: higher cost of goods and service

C: creation of unemployment

D: inefficient service delivery

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Correct Answer

Explanation

Oneof demerits of the privatization of public corporations in Nigeria is highercost of goods and services. Prices of goods and services tend to be higher withprivatization. Some social infrastructural facilities may be beyond the rich ofan average man in the country. Another disadvantage of privatization is that itmay tend towards profit maximization which is characteristic of suchbusinesses.