A trend that has been reinforced by many developing countries is privatization. Privatization refers to
A) purchasing large companies and turning them into state-owned enterprises.
B) investing government money in large, privately-owned companies.
C) exchanging bonds for shares in state-owned enterprises.
D) selling large state-owned enterprises to private owners in the financial sector.
E) selling large state-owned enterprises to private owners in key areas such as electricity, telecommunications, or petroleum.
E
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In the Boeing/Airbus oligopoly example discussed in the text, why did Boeing and Airbus have an incentive to produce more planes than the monopoly outcome?
What will be an ideal response?
The basic aggregate demand and aggregate supply curve model helps explain ________ fluctuations in real GDP and the price level
A) long-term B) unrelated C) both short-term and long-term D) short-term
If there are human capital externalities, then
A) human capital should be taxed. B) convergence in per capita incomes occurs. C) differences in human capital across countries can persist. D) pollution is a problem.
The CEO and stockholders are not necessarily the same people. This gives rise to
A) upstream and downstream contracts. B) a principal-agent problem. C) complete contracts. D) a control over moral hazard.