Which of the following steps is most likely to be involved in the dere

QUESTION

Which of the following steps is most likely to be involved in the deregulation of an economy?

A. Increasing restrictions on direct investment by foreign enterprises and international trade

B. Privatizing state-owned enterprises

C. Exercising a high degree of state control over production and pricing

D. Abolishing laws related to the protection of property rights

E. Opposing democracy by adopting communism

ANSWER

B
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.