How Does Privatization Help Stimulate Gains in Economic Efficiency

question 84

Multiple Choice

How does privatization help stimulate gains in economic efficiency?

• A) It allows newly privatized firms to gain monopoly position in a particular industry.
• B) It provides incentives to new private owners to search for increases in productivity and to enter new markets.
• C) It encourages state control over price and production output.
• D) It raises barriers to direct investment by foreign enterprises.
• E) It results in reservation of heavy industry for state ownership and the increase of import tariffs.

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Definitions:

Special Interest Groups

Organizations of people with shared interests who attempt to influence public policy and decision making to benefit their members or causes.

DSM

Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to diagnosing mental disorders.

Medical Model

A framework for understanding diseases and disorders by focusing on biological factors and categorizing them through diagnosis, symptoms, and treatments, often underestimating the role of psychological and social influences.