1. What does the term "crony capitalism" refer to?
A. Free market competition
B. Government control of all businesses
C. Favoring friends and allies in business deals
D. State-owned enterprises only
Answer (1)
The answer is letter C. Favoring friends and allies in business dealsCrony capitalism is a system where businesses succeed not because of talent or fair competition, but because of close relationships with government officials. This means only those with political connections get contracts, licenses, or permits.In the Philippines, this happened during the Marcos Sr. era when certain families were given special privileges. It can lead to corruption and inequality because smaller or honest businesses are left out. It hurts the economy by creating unfair systems and discouraging innovation.
