Exam 3: National Differences in Economic Development

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In mixed economies, in certain sectors the state sets prices, owns businesses, limits private enterprise, restricts investment by foreigners, and restricts international trade.

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Is privatization by itself enough to guarantee economic growth? Why? Explain using an example.

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Transformation from centrally planned command economies to market-based economies can be attributed to the fact that command and mixed economies failed to deliver the sustained economic performance achieved by countries adopting market-based systems.

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_____ involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate.

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Privatization refers to the process of hiring private management consultancy firms to manage state-owned enterprises.

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