Which of the Following Is True About State-Owned Enterprises (SOEs)

question 86

Multiple Choice

Which of the following is true about state-owned enterprises (SOEs) ?

• A) Privatization of state-owned enterprises blocked the release of immediate capital to invest in strategic areas.
• B) State ownership is the most ideal engine for economic growth.
• C) Privatization of state-owned enterprises continually drained the future national resources.
• D) State ownership has resulted in complicated and unpredictable regulatory environments.
• E) State ownership has consistently resulted in the inclusion of foreign and domestic private ownership, and the formation of efficient public companies.

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Definitions:

Specialization

The process of focusing work and production on a limited range of activities, leading to increased efficiency and expertise in those areas.

Tonnage

A measurement of weight or volume used to quantify cargo, shipping capacity, or displacement of ships, traditionally measured in tons.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), representing the trade-offs of choosing one good over another.

Gains From Trade

The benefits obtained by countries or individuals from engaging in international trade, allowing for specialization and more efficient production.