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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.
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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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