Question
A. Both parties use capital
and labour in the struggle to secure
property rights.
B. The thief spends time and money in his attempt to steal (he buys wire
cutters) and the legitimate property owner expends resources to prevent the
theft (he buys locks).
C. A social cost of theft is that both the thief and the potential victim use
resources to gain or maintain control over property.
D. These costs may escalate as a type of technological arms race
unfolds.
E. A bank may purchase more and more complicated and sophisticated safes,
forcing safecrackers to invest further in safecracking
equipment.
___
Solution
The best opening statement
is C. A continues with the same idea. B then describes the way in which both
the thief and owner waste their money. This is followed by D which talks about
escalating costs. E is the concluding statement.
Hence, the correct sequence is CABDE
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