Which of the Following Statements About the Privatization and Marketization

question 3

Multiple Choice

Which of the following statements about the privatization and marketization of countries transitioning from communism is accurate?

• A)Those advocating shock therapy wanted to minimize the short-term social disruptions of marketization.
• B)Inflation and hyperinflation were fears of those that advocated a gradual approach to marketization.
• C)Many companies were uncompetitive in the international system, but large industrial firms seemed to be best at surviving privatization.
• D)Postcommunist countries almost universally sought to privatize by distributing firms' shares to the public as a whole.
• E)Most postcommunist countries agreed that privatization should occur and be allowed to complete its course before marketization was attempted.

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Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.

Variable Costs

Expenditures that adjust based on the quantity of production or the scale of sales.

Utility Rates

Charges imposed by utility companies for the use of services such as electricity, gas, water, and sewer.

Contribution Margin

The amount by which the sale of a product or service exceeds its variable costs, used to cover fixed costs and contribute to net income.