Question

In an economy transitioning from command to market, why would privatization tend to raise a nation's overall standard of living?

O It places the means of production in the hands of the government
O It places a nation's ruling class in a position to administer the economy efficiently
O People are more likely to be productive when it benefits them personally
O People are less likely to assume the risks of entrepreneurship

Answer 1

People are more likely to be productive when it benefits them personally

Step-by-step explanation:

Adam Smith's basic ideas: self-interest, competition, supply and demand

Adam Smith : markets tend to work best when the government leaves them alone : aka laissez-faire

robinhood & quizlet