Explain why privatization can help the economy become more efficient

What will be an ideal response?

Under a system of private ownership, owners reap the rewards of their successes and suffer the consequences of their failures. Private ownership provides a strong incentive for efficient operation, innovation, and hard work that is lacking when ownership is centralized and profits are distributed to the people.

Economics

You might also like to view...

Which of the following is consistent with the classical theory of growth?

A) permanent increases in real wages B) permanent growth in productivity C) rapid population growth in poor countries D) permanent increases in living standards

Economics

Why would the market economy produce too little education?

What will be an ideal response?

Economics