Which of the following is correct with respect to privatization and deregulation?
A) Deregulation yields higher economic performance than privatization.
B) Privatization only works in socialist countries.
C) Privatization means converting companies that are in financial trouble into government-controlled organizations.
D) The trend toward both privatization and deregulation slowed somewhat after the financial crisis of 2008.
E) They mean essentially the same thing.

Question

Quizplus · Accepted Answer

The statement "The trend towards both privatization and deregulation slowed somewhat after the financial crisis of 2008" is the only correct choice. Option A is incorrect because it suggests that deregulation is always better than privatization, which is not true. Option B is incorrect because privatization can work in any type of country, not just socialist ones. Option C is incorrect because privatization means transferring ownership and control of a publicly-owned company to the private sector, not the government. Option E is incorrect because privatization and deregulation are two distinct concepts that have different meanings.

Which of the Following Is Correct with Respect to Privatization