Privatization is the process of turning government enterprises into private enterprises in ...

Privatization is the process of turning government enterprises into private enterprises in transitional economies.
 a. True
  b. False

QUESTION 2

If there is a great deal of violence and uncertainty in the country of Crazico, people will be less willing to invest in their own future or in the future of Crazico.
 a. True
  b. False

QUESTION 3

Social capital is
 a. the shared values and trust that promote cooperation in the economy
  b. the buildings and equipment used to produce goods and services
  c. a government regulation aimed at improving health and safety
  d. the accumulated knowledge, skill, and experience of the labor force
  e. the owner's own or borrowed money invested in a business

QUESTION 4

Laws, customs, conventions, and other institutional elements that sustain an economy fall under the category of
 a. rules of the game
  b. human capital
  c. natural resources
  d. financial institutions
  e. capital infrastructure

QUESTION 5

Sjen Mavago, the economics minister of the country of X-Marks-the-Spot, has concluded that entrepreneurs are unable to generate the kind of growth the country needs. Her decision to create state enterprises might be motivated by the desire to
 a. earn profit
  b. provide jobs for friends and relatives of government officials
  c. take risks
  d. encourage a free market
  e. limit government's role in the economy

QUESTION 6

Which of the following resources is necessary to combine efficiently the other resources to produce goods and services?
 a. natural resources
  b. capital
  c. labor
  d. entrepreneurial ability
  e. financial institutions

QUESTION 7

By requiring that policyholders pay a deductible on a claim, insurers guard against
 a. symmetrical information
  b. adverse selection
  c. natural selection
  d. moral hazard
  e. the winner's curse