Scenario: Learning the American Way
Sergei Chernovl is a Russian exchange student. To learn more about how a market economy functions, Sergei is writing a research paper comparing business in Russia with business in the United States.
-Sergei knows that an important factor in a market-based economy is privately operated companies. As Russia goes through the privatization process, its main objective is to ________.
A) increase tax revenues and productivity
B) increase employment and capital productivity
C) increase social welfare and land productivity
D) increase economic efficiency, boost labor productivity, and raise living standards

Question

Quizplus · Accepted Answer

The privatization process in Russia is aimed at increasing economic efficiency, boosting labor productivity, and raising living standards. This is because privately operated companies are a key element in a market-based economy, and their success can lead to overall economic growth and development. By privatizing state-owned companies, Russia hopes to increase competition, encourage innovation, and attract foreign investment, all of which can contribute to these objectives.