QUESTION Which of the following is most likely to be implemented by a country as a part of deregulation? A. Prohibition of private enterprises from operating in certain sectors B. Commitment toward communism C. Removal of price controls D. Centrally planned economic system E. Increased restrictions on foreign direct investment ANSWER C Deregulation involves […]
QUESTION The United Nation of Zorwaya has strict restrictions on direct investment by foreign enterprises, and it opposes the establishment and operation of private enterprises. The highest authority in the country enforces tight control over prices and production output. According to this information, the United Nation of Zorwaya most likely opposes: A. nationalization of private […]
QUESTION Which of the following is most likely to indicate that the nation of Erbia has adopted deregulation? A. The Erbian government exercises tight control over the prices of food grains. B. The establishment of private enterprises in steel industry is prohibited by the Erbian government. C. The retail sector in Erbia has been opened […]
QUESTION Which of the following steps is most likely to be involved in the deregulation of an economy? A. Increasing restrictions on direct investment by foreign enterprises and international trade B. Privatizing state-owned enterprises C. Exercising a high degree of state control over production and pricing D. Abolishing laws related to the protection of property […]
QUESTION Which of the following movements started in Great Britain in the early 1980s when then Prime Minister Margaret Thatcher started to sell state-owned assets such as the British telephone company? A. Nationalization B. Privatization C. Anti-democratic D. Communist E. Anti-globalization ANSWER B The privatization movement started in Great Britain in the early 1980s […]
QUESTION Which of the following statements is true about privatization? A. The privatization movement started in China in the early 1980s. B. Privatization involves replacing a state-owned monopoly with a private monopoly. C. For privatization to become successful, countries should adopt communism. D. When newly privatized firms are extensively protected from foreign competition, they have […]
QUESTION The government of Greenland Republic protects its newly privatized firms from foreign competition by imposing stringent barriers to international trade and foreign direct investment. As a result of this, the newly privatized firms will: A. continue acting like state monopolies. B. operate at their maximum efficiency. C. pay huge taxes. D. import raw materials […]
QUESTION How does privatization help stimulate gains in economic efficiency? A. It allows newly privatized firms to gain monopoly position in a particular industry. B. It provides incentives to new private owners to search for increases in productivity and to enter new markets. C. It encourages state control over price and production output. D. It […]
QUESTION The absence of a legal system that protects property rights and the lack of machinery to enforce that system in a market economy usually results in: A. an improvement in the operating efficiency of newly privatized firms. B. reduced barriers to foreign direct investment and international trade. C. an increase in the incentives to […]
QUESTION Economic advances in many countries have led to the: A. decline of middle and working classes. B. rise of totalitarian reforms. C. decline of property rights. D. emergence of closed and self-contained societies. E. emergence of increasingly prosperous middle and working classes. ANSWER E In many countries economic advances have led to the […]
