Which of the following creates an environment that is conducive to pro

QUESTION

Which of the following creates an environment that is conducive to product and process innovations and to entrepreneurial activity?

A. Communism

B. Centrally planned economy

C. Privatization

D. Command economy

E. Lack of strong property rights

ANSWER

C
Economic stagnation occurred in many mixed economies in those sectors where the state had a monopoly (such as coal mining and telecommunications in Great Britain). This stagnation provided the impetus for the widespread privatization of state-owned enterprises that was witnessed in many mixed economies during the mid-1980s.