Consider an economic system that has private firms and markets where goods are exchanged. However, the governing institutions are very weak, and there is no reliable legal system to enforce contracts or protect private property from theft. Which of the following outcomes is the most likely consequence of this institutional failure?
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Consider an economic system that has private firms and markets where goods are exchanged. However, the governing institutions are very weak, and there is no reliable legal system to enforce contracts or protect private property from theft. Which of the following outcomes is the most likely consequence of this institutional failure?
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