The Absence of a Legal System That Protects Property Rights

Multiple Choice

The absence of a legal system that protects property rights and the lack of machinery to enforce that system in a market economy usually results in

A) an improvement in the operating efficiency of newly privatized firms.
B) reduced barriers to foreign direct investment and international trade.
C) an increase in the incentives to engage in economic activity.
D) deregulation and privatization of the economy.
E) the lack of incentive to engage in economic activity.