One of the disadvantages of privatization is that it?
- promotes inefficiency of staff
- brings about economic decline
- reduces government revenue
-
causes increase in the prices of products
The correct answer is: D
Explanation
Privatization which involves the transfer of the ownership of state-owned enterprises to private individuals/ private sector is disadvantageous in a way that these privatized companies become profit-oriented thereby increasing the prices of their products and services.
Private companies are profit-driven which is the direct opposite of public enterprises whose major objective is service delivery.