If the centrally planned economy of Rowboat dismantles central controls before institutions such as property rights are in place, instability will most likely result.

Question

Quizplus · Accepted Answer

Without property rights and other necessary institutions to regulate the market, the dismantlement of central controls can lead to instability and chaos in an economy. Investors and businesses may be hesitant to invest and operate without proper regulations and protections in place.

If the Centrally Planned Economy of Rowboat Dismantles Central Controls