The Process of Turning Public Enterprises into Private Enterprises Is

question 27

Multiple Choice

The process of turning public enterprises into private enterprises is called:

• A) Nationalization
• B) Gradualism
• C) Capitalism
• D) Privatization
• E) Socialism

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Definitions:

Barriers to Entry

Factors that make it difficult for new firms to enter a market, such as high start-up costs, stringent regulations, or strong incumbent firms.

Monopolist

A market participant that has exclusive control over the supply of a particular good or service, potentially allowing them to manipulate the market.

Increase Their Profits

A strategy or action that leads to a higher amount of net earnings by a business or individual.

Incentive Structure

The system of rewards and penalties that motivates individuals or groups to behave in specific ways beneficial to achieving desired outcomes.