Explain why privatization can help the economy become more efficient
What will be an ideal response?
Under a system of private ownership, owners reap the rewards of their successes and suffer the consequences of their failures. Private ownership provides a strong incentive for efficient operation, innovation, and hard work that is lacking when ownership is centralized and profits are distributed to the people.
You might also like to view...
Companies are never justified in not installing all possible safety devices in their products when the omission of those safety devices could result in the loss of life to the users of the products
Indicate whether the statement is true or false
According to your text, economic theory developed to answer which question?
A) Why does man have the will to power? B) Can we create a government strong enough to tie its own hands? C) How are countless individuals led to do "the right thing" without ever caring about doing good? D) Is greed good?
In the above figure, if the price is $1.25 per gallon of milk and 5 million gallons are produced and consumed, then the consumer surplus is ________ and the producer surplus is ________
A) $3.125 million; $3.125 million B) $12.5 million; $12.5 million C) $6.25 million; $6.25 million D) None of the above answers are correct.
An analysis of countries experiencing rapid inflation indicates that inflation is generally
a. caused by strong labor unions. b. the result of restrictive macroeconomic policy, which pushes up interest rates. c. caused by the impulse buying of consumers, who continue to buy the same goods even when prices rise. d. the result of rapid growth in the money supply.