State Industries Are Notoriously Poor "Incubators" for the Development of Profit-Focused

question 60

Multiple Choice

State industries are notoriously poor "incubators" for the development of profit-focused, entrepreneurial persons who may leave the firm to set up their own businesses. This statement is an argument in favor of

• A)free immigration and emigration.
• B)privatizing state industries.
• C)central planning.
• D)free trade.

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Definitions:

Work Place

A location where people are employed and engage in various activities to earn a living.

Lemons

In economic terms, refers to the problem of asymmetric information regarding the quality of products, especially used goods that are subpar or defective.

Peaches

Refers to the sweet, juicy fruit from the Prunus persica tree, often consumed fresh, canned, or used in culinary preparations.

Adverse Selection

A phenomenon in markets where buyers or sellers have information that one party to a transaction does not have, leading to an inefficient allocation of resources.