Question

A midwestern city negotiates a deal with a company to operate its parking meter system. the city will receive a lump sum payment of several million​ dollars, and the company will have the rights to​ operate, maintain, and collect the revenue from the parking meters. this is an example of​ _______.

a. privatization
b. socialism
c. a planned economy
d. monopolistic competition
e. perfect competition

Answer 1

That is an example of privatization. The transfer of possession, assets or commerce from the government to the private sector is called privatization. The government ends to be the owner of the entity or business. The development in which a publicly-traded corporation is taken over by a few individuals is also called privatization.