Practise privatisation questions by explaining stakeholder effects in contexts such as school meals, broadcasters, airports and railways.
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