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.Which of the following may have motivated her decision to create state enterprises?

Question

Quizplus · Accepted Answer

The statement implies that the economics minister does not trust entrepreneurs and thinks they cannot generate the necessary growth. Therefore, the desire to create state enterprises may stem from the belief that only the government can drive the economy forward. However, the desire to provide jobs for friends and relatives of government officials is a possible motive for creating state enterprises, rather than the desire to encourage a free market or take risks.

Sjen Mavago, the Economics Minister of the Country of X-Marks-The-Spot