11 Analyse the reasons, why government own certain types of businesses. [6]

[Sir Afzal Shad]

Q11 Analyse the reasons, why government own certain types of businesses. [6]

Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[Humzah Zafar]

[KN]To control monopolies
[AN]In a planned economy, monopolies are created and these monopolies may decide to exploit customers by charging high prices for lower quality products.A government may control such businesses to stop them from taking advantage of customers and they may own these businesses to ensure high quality output
[AN+]This will increase people's affordability of products which may increase their standard of living

[KN]To increase economic growth
[AN]Government might own businesses in areas which are emerging to stimulate innovation.This involves research and development investments and targeted subsidies
[AN+]This may be done to encourage production which will increase economic growth and economy will flourish

[Syed Raza]

[KN] Price and Quality Control
[AN] Government ownership can enable the state to control prices, quality, and safety standards in industries that are more beneficial for the customers. such as healthcare etc.
[AN+] this can lead to higher output as prices and quality will be controlled thus leading to satisfied customers.

[KN] monopolies can be Controlled
[AN] monopolies are created so that higher prices can be charged for low quality goods and exploiting the customers and government can take over these businesses to ensure high quality of goods to be produced.
[AN+] Thus customers would be now willing to pay for these goods.

[khuram khan]

{KN} Stopping the establishment of monopolies
{AN} The business own some of the business so that customer can be saved from the tyranny of being exploited by monopolies through high prices as the number of substitutes are close to none
{AN+} Thus the government in order to save the economy from such crisis they work for there betterment and own some business in order to control the policies of the monopoly and also let new businesses to enter the market as well

{KN} Stop the market failure
{AN} The government would own some of the business so that it can stop the competitors who are producing a high number of demerit good and are causing a misallocation of resource by over producing them
{AN+} thus the government tries to put stop such misallocation of resource and tries oust such business who are harmful to the economy than the people realize and need to be eliminated

[Syed Mustafa Ali]

[KN] Maintain rules and regulations
[AN] In some cases, governments may own businesses to ensure better regulation and oversight of critical industries.
[AN+] This is especially true in sectors where market competition alone may not be sufficient to prevent abuses or protect public interests.
[KN] Monopoly Control
[AN] Governments may own or control businesses in industries where natural monopolies exist, such as postal services or air traffic control.
[AN+] These sectors are often best served by a single, regulated entity to prevent exploitation of consumers.

[Hadia Zia]

[KN] To reduce income inequality gap b/w the rich and poor.
[AN] Govt may own some businesses so that the revenue collected from them can used to fund social programs or address income inequality which will reduce poverty and crime rates in the economy.
[AN+]Hence this will promote equality in the economy and will improve the SOL of poor.

[KN] To ensure unemployment rate stays low
[AN] With increased technology businesses are moving more towards capital intensive methods day by day which reduces the need of physical labor, so the govt may own some businesses to make sure people are employed [with low or even desirable pay] as this will give them experience and may learn new skills.
[AN+]Thus, this will result in stable employment rate which will be a reason of people hidden skills and talents getting the opportunity to be polished.

[Ahmed Zunair]

[kn] Price and quality control
[an] government owned firms can maintain the quality and price levels.
[an+] This will lead to higher sales as the prices are set according to the quality of the goods.

[kn] control monopolies
[an] monopolies charge high prices for their goods and services as their is no competition.
[an+] thus government take over these firms to make a fair market.

[Ayesha imran]

[kn] some goods are nonexcludable and nonrival such as street lighting and defence
[an] so pvt firms are reluctant to produce them due to lesser inventive
[an+] therefore govt owns businesses providing them as they are necessary fo the welfare of people
[kn] it may be difficult for some poor people to afford necessary goods upon prices which private firms sell
[an] therefore government owns businesses providing subsidized goods
[an+] this reduces income inequalities as a lower proportio of the incomes of the popr are spent on necesseties

[Salman Khalid]

[KN] Monopoly Control
[AN] Governments may own or control businesses in industries where natural monopolies exist, such as postal services or air traffic control.
[AN+] These sectors are often best served by a single, regulated entity to prevent exploitation of consumers.

[kn] Price and quality control
[an] government owned firms can maintain the quality and price levels.
[an+] This will lead to higher sales as the prices are set according to the quality of the goods.

[khadija nasir]

[kn] price pricing limitation
[an] setting a specific price on necessities in order to make them affordable to everyone
[an+] can gain support from people as well as reduce poverty

[kn] in order to reduce illiteracy/provide healthcare at ease
[an] government revenue funded by taxation can be used on opening up healthcare and educational facilities for the poor as they may not be able to afford private healthcare/education
[an+] increased employment and reduced illetracy rates

[Maham fatima]

[KN] To ensure provision of essential goods to everyone
[AN]Govt may own water and power businesses e.g WAPDA which can help to prevent development of natural monopolies
[AN] leading to fair access of such goods and prevent customer exploitation

[KN] To reduce unemployment
[AN] Govt. owned businesses are unlike privately owned business and even hire unskilled labour.
[an] this increases their incomes and result in high SOLS

[Sarah Shahzad]

(Kn) To control Monopolies (an) in some cases businesses exploit customers by eg charging high prices (an+) hence the government takes control of such businesses, so that people can afford easily.

(Kn) to increase economic growth (an) some businesses earning a large amount, and have potential to grow in the future are owned by the government (an+) by this the government can also redistribute income and economic growth will increase.

[Ibrahim Aamir]

[KN] To break the hold of monopoly
[AN] By owning a frim in every type of the business they would able to keep up with the competition
[AN+] this would give them a way to lower their prices to an extend that they bit the monopoly

[KN] to improve the unemployment in the country
[AN] they can introduce new technology in the market to increase productivity
[AN+] with the rise in technology they can improve their firms and expand and thus lower unemployment

[Farzan Siddiqui]

[KN] Better price and quality control.
[AN] Government ownership can enable the state to control prices, quality, and safety standards in industries that are more beneficial for the customers.
[AN+] This leads towards higher output as prices and quality will be controlled thus leading to satisfied customers.

[KN] Monopolies can be controlled
[AN] Monopolies are created so that higher prices can be charged for low quality goods and exploiting the customers and government can take over these businesses to ensure high quality of goods to be produced.
[AN+] This would result in customers willing to pay for these goods.

[hafsa kashif]

[KN]To control monopolies.
[AN]In a planned economy, monopolies are created, and these monopolies may decide to exploit customers by charging high prices for lower quality products. A government may control such businesses to stop them from taking advantage of customers and they may own these businesses to ensure high quality output
[AN+] This will increase people's affordability of products which may increase their standard of living
[KN]To increase economic growth
[AN]Government might own businesses in areas which are emerging to stimulate innovation. This involves research and development investments and targeted subsidies
[AN+] This may be done to encourage production which will increase economic growth and economy will flourish