Which of the following is most likely to indicate that the nation of E

QUESTION

Which of the following is most likely to indicate that the nation of Erbia has adopted deregulation?

A. The Erbian government exercises tight control over the prices of food grains.

B. The establishment of private enterprises in steel industry is prohibited by the Erbian government.

C. The retail sector in Erbia has been opened for foreign direct investment.

D. The Erbian government has been criticized for its inability to introduce a legal system to safeguard property rights.

E. Erbia ranks the lowest among the countries that grant both political and economic freedoms to its citizens.

ANSWER

C
Deregulation involves removing price controls, thereby allowing prices to be set by the interplay between demand and supply; abolishing laws regulating the establishment and operation of private enterprises; and relaxing or removing restrictions on direct investment by foreign enterprises and international trade.