The sale of public sector assets to the private sector is called?

• A. Privatisation
• B. Nationalisation
• C. Dynamic Efficiency
• D. Third Parties

Answer: (A)

Privatisation is the process of transferring ownership and control of government-owned assets or services to private individuals or firms. It involves selling public-sector operations to the private sector, turning state-owned enterprises into privately owned ones. This is typically done to improve efficiency through private-sector incentives, raise revenue for the government, and reduce political influence over day-to-day decisions. It’s different from nationalisation, where private assets become government-owned. Dynamic efficiency is about how quickly efficiency gains occur over time, not about who owns the asset, and “third parties” isn’t the term for selling public assets.