Which of the following is a step involved in the deregulation of a command economy?
A) Adding price controls
B) Temporarily restricting international trade
C) Abolishing laws regulating the establishment and operation of private enterprises
D) Increasing restrictions on direct investment by foreign enterprises

Question

Quizplus · Accepted Answer

Deregulation involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate. Deregulation in command economies involved 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.

Which of the Following Is a Step Involved in the Deregulation