Moderate

Which of the following statement is NOT true about state owned enterprises (SOEs) ?

Correct answer: C. SOEs in South Korea and Sweden generally achieve inferior economic results to those in Ghana

  • A. SOEs perform better with competition
  • B. Successful performing SOEs in Japan, Singapore and Sweden have greater managerial autonomy and accountability than other SOEs
  • C. SOEs in South Korea and Sweden generally achieve inferior economic results to those in Ghana
  • D. Financial autonomy is a major factor contributing to SOEs managerial effectiveness

Explanation

The statement about South Korean and Swedish SOEs being inferior to Ghanaian SOEs is false; the successful examples generally perform better because of stronger autonomy and accountability. Competition and financial autonomy usually improve SOE performance.

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Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.

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