Among the benefits of privatization of state owned enterprises is
(a) increased employment.
(b) improved efficiency.
(c) reduced pollution.
(d) all of the above.
(e) none of the above.
B
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The figure above shows the market for college education. Left to itself without any government intervention, a competitive market would create a deadweight loss equal to
A) zero. B) the area d. C) the area a + c. D) the area b + c. E) the area b + d.
A government budget surplus from reduced government spending (no change in net taxes) will ________ the level of investment in the economy and ________ the level of saving (private plus public) in the economy
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase
If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $4 and they are charging the profit-maximizing retail price of $12, what is wholesale price of the product?
A) $16 B) $4 C) $8 D) $12
Which of these explain why growth is an important economic goal?