How Does Privatization Help Stimulate Gains in Economic Efficiency

question 37

Multiple Choice

How does privatization help stimulate gains in economic efficiency?

• A)By providing subsidies to newly privatized firms to shield them from outside competition and by raising barriers to FDI.
• B)By giving new private owners the reward of profits for searching for increases in productivity,entering new markets,and exiting losing ones.
• C)By allowing newly privatized firms monopoly over a particular industry.
• D)By encouraging the practice of state-controlled price regulation.

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Definitions:

Nutritional Properties

Characteristics of foods and substances in terms of their health benefits, including their vitamins, minerals, and overall contribution to a balanced diet.

Higher Income

Refers to a comparatively greater level of earnings or revenue, typically above the average for a certain geography or population.

Growth Hormones

Naturally occurring substances in the body that stimulate growth, cell reproduction, and cell regeneration.

Ableism

Is prejudice and discrimination against people who have disabilities.