A Level Economics AQA Practice Exam 2025 - Free Economics Practice Questions and Study Guide

A government may nationalise an industry primarily to ensure public ownership of essential services. This approach is often taken when a government believes that certain industries, especially those providing critical services like water, electricity, and healthcare, should be maintained as public goods. The rationale behind this is rooted in the belief that essential services should be accessible to all members of society, regardless of their ability to pay, and that public ownership can help prioritize social welfare over profit.

Nationalisation allows the government to control prices, ensure consistent quality, and provide services without the profit motive that typically drives private companies. This can lead to more equitable access to services, as the aim shifts towards serving the public interest rather than maximizing shareholder returns. By nationalising key industries, governments aim to safeguard these sectors against market failures or monopolistic practices that could harm consumers.