Edexcel IGCSE Economics 1.1.5.k effects of privatisation
Practise privatisation questions by explaining stakeholder effects in contexts such as school meals, broadcasters, airports and railways.
- Syllabus
- First assessment 2019
- Course
- Economics 4EC1
Exam points
- Explain consumer effects such as price, quality, competition or service changes.
- Analyse worker impacts, including redundancy or changes to pay and conditions.
- Evaluate whether privatising an airport, railway or school-meals service benefits stakeholders.
1.1.5.k Effects of privatisation on stakeholders question 1
[Maximum number: 3]
The Brazilian Government announced plans to privatise one of its state-owned food companies.
Explain one possible advantage of privatisation for consumers in Brazil.
AO2 3 marks
Award 1 mark for identifying an advantage
Award 1 mark for developing the response
Award 1 mark for the response being in context
- Consumers may benefit from lower prices (1) because a private firm is likely to want to be efficient (1) so it will aim to produce food at its lowest possible cost (1)
- Better quality may be available to consumers (1) because private firms will aim to make a profit (1) meaning they need to retain customers by providing quality food products (1)
Accept any other appropriate response
(3)
Question
number
With reference to the data above and your knowledge of economics, analyse how market failure is likely to occur at the TSFG venue.
Indicative content
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