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

Privatisation involves the sale of public sector organizations to the private sector. This process typically entails transferring ownership and control of state-run enterprises, services, or assets into private hands. The rationale behind privatisation often includes increasing efficiency, fostering competition, and reducing government burden in managing industries or services that can potentially be run better by private entities.

In contrast, the other choices describe different concepts. The transfer of private businesses to the public sector pertains to nationalization, while deregulation involves removing restrictions on private enterprises rather than transferring ownership. Establishing public ownership of resources is not aligned with privatisation but rather indicates a move towards greater state control. Thus, the correct answer reflects the essence of privatisation as a transfer of ownership from public to private hands.