A firm should be transparent, meaning
a. the windows at headquarters should be cleaned regularly
b. if executives lie during a stockholder meeting, people should be able to see right through them
c. someone should be able to look at the books and the balance sheet and tell exactly what's going on
d. None of the answers is correct
e. All of the answers are correct
QUESTION 2Privatization requires
a. transparency
b. the training of competent managers
c. the installation of adequate facilities for transportation
d. All of the answers are correct
e. None of the answers is correct
QUESTION 3Privatization is the
a. process of turning private enterprises into public enterprises
b. the same as nationalization
c. process of turning public enterprises into private enterprises
d. process of turning state-owned enterprises into public enterprises
e. process of turning sole proprietor enterprises into corporate enterprises
QUESTION 4One example of gradualism is taking place in
a. China
b. the United Nations
c. New Zealand
d. Japan
e. France
QUESTION 5If the country of Heehee makes the transition from central planning to a market economy in a matter of months, it is an example of the big-bang approach.
a. True
b. False
QUESTION 6The first step in gradualism is
a. the privatization of larger industrial sectors
b. the phasing out of money-losing enterprises
c. large industrial enterprises quickly finding market-clearing prices
d. the thriving of small-scale capitalism
e. state-owned enterprises running more like businesses to maximize profit
QUESTION 7In a system of impersonal exchange,
a. bureaucratic ties on the production side are critical
b. the economy benefits from specialization and modern technology
c. inside connections on the consumption side are necessary
d. successful institutional evolution makes no difference
e. there is very little division of labor
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