Scenario: Learning the American Way
Sergei Chernovl is a Russian exchange student.To learn more about how a market economy functions,Sergei is conducting research comparing businesses in Russia with businesses in the United States.
-Sergei learns that an important aspect of market-based economies is the private ownership of companies.As Russia goes through the privatization process,it aims to ________.

Question

Quizplus · Accepted Answer

The private ownership of companies is a key aspect of market-based economies because it encourages competition and efficiency. As Russia goes through privatization, its aim is to increase economic efficiency by allowing private companies to operate and compete in the market. While increasing tax revenues and improving military defense may also be goals of the government, they are not directly related to the privatization of companies. Increasing social welfare may be a goal, but it is not directly related to the functioning of a market-based economy.