Explain the paradox that government needs to intervene in the economy to allow

markets to work more freely. What forms does this intervention take?

 

 

 Why is privatization felt to be a spur to greater efficiency in the major utilities?

How would you measure such efficiency ‘gains’?

 

 

 In what ways might a government’s policy on privatization be related to its policy

on competition?

 

 

 What is meant by ‘labour market flexibility’ and why is it thought to be

important?