Some factors currently exist that inhibit the growth rate of the Mexican economy.The main reason given is
A)the introduction of free-market reforms.
B)the lack of natural resources in Mexico.
C)the lack of the rule of law that predictably enforce property rights.
D)the total lack of governmental intervention in the market place.
E)the lack of highly educated workers.

Question

Quizplus · Accepted Answer

The lack of the rule of law that predictably enforce property rights is one of the main factors that inhibit the growth rate of the Mexican economy. This leads to a lack of confidence in the market, which discourages investment and economic growth. Other factors such as corruption, violence, and bureaucracy also contribute to the problem. However, the introduction of free-market reforms and governmental intervention in the market place have been implemented and have contributed positively to Mexico's economic growth in recent years, making options A and D incorrect. While the lack of natural resources and education may also be factors, they are not as significant as the lack of rule of law. Therefore, choice C is the best answer.

Some Factors Currently Exist That Inhibit the Growth Rate of the Mexican