Observation

Most candidates who attempted this question could not state the functions of a cartel. They have limited knowledge of a cartel. For b part of the question, they performed well.

The expected responses are.

(a)        Functions of a Cartel

1. Cartel helps to fix prices of commodities.
2. Cartel establishes levels of production and sales for the participating companies.
3. Cartel allocates market territories to members.
4. Cartel takes over the entire selling function.
5. Cartel fights competition from non-members.

(b)        Advantages of Public Enterprises

1. They provide infrastructural facilities such as roads, schools, electricity and water to the           masses/essential services.
2. As government establishments, they have sufficient capital for executing projects and           programmes.
3. They provide employment opportunities for the population.
4. As legal entities, they can sue and be sued.
5. They charge lower fees for their services to the benefit of consumers.
6. Public enterprises reduce exploitation of consumers as prices are uniform.
                       Disadvantages of Public Enterprises
1. The cost of establishing them is high.
2. They are monopolistic in nature and often abuse their privileges.
3. They could engage party stalwarts who do not have enough experience.
4. Red–tapism or bureaucratic tendencies are rampant and this affects their productivity.
5. They are prone to mismanagement leading to wastages and embezzlement.
6. Lack of competition bring about inefficiency in their operation.