Question

According to Edwards, a major source of financial mismanagement for countries is excessive government spending to:

a. Reduce government regulations and other barriers for entrepreneurs.

b. Operate huge state-owned companies like steel mills, airlines, etc.

c. Promote exports instead of focusing on expanding imports.

d. Support new scholarships for higher education students.

Answer 1

State-owned enterprises generally operates in inefficient manner as responsibility and accountability is not pursued in these enterprises in effective manner.

These inefficient enterprises creates massive financial wastage for the economy.

In this regards, Edwards has stated that a major source of financial mismanagement for countries is excessive government spending to operate huge state-owned companies like steel mills, airlines, etc.

Hence, the correct answer is the option (b).