Which of the following is an example of privatization?
A. The federal government contracts with a private firm to operate a youth detention center.
B. A private business receives funding from the government to buy fair-trade products.
C. The government requires a hospital to purchase liability insurance through a government agency.
D. A public library receives a grant from the government to update its civics book collection.
E. A private business is able to reduce its overall spending by outsourcing some production to a government agency.
Answer: A
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