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:

Drug Experimentation

The process of testing and evaluating the effects, safety, and efficacy of pharmaceutical substances in controlled environments.

Alternative Hypothesis

A statement suggesting there is a difference, effect, or relationship for the population from which the sample is drawn.

One-way ANOVA

A statistical test used to compare the means of three or more independent groups to see if there’s a statistically significant difference.

Drug Experimentation

The act of trying or testing new pharmaceutical substances to observe their effects, often in controlled clinical trials.