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Question:

The sentences given in each question, when properly sequenced, form a coherent paragraph. Each sentences is labelled with a letter. Choose the most logical order of sentences from among the four given choices to construct a coherent paragraph.

Both parties use capital and labour in the struggle to secure property rights.
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)
A social cost of theft is that both the thief and the potential victim use resources to gain or maintain control over property.
These costs may escalate as a type of technological arms race unfolds.
A bank may purchase more and more complicated and sophisticated safes, forcing safecrackers to invest further in safecracking equipment.

Explanation:

Statement C is the introductory statement since it introduces the topic of the paragraph, the social cost of theft both for the thief and the potential victim. This eliminates options 1 and 3.
There is a clear C-A link since C mentions the social cost of theft for the thief and the potential victim and A mentions the type of costs incurred by these two ‘parties’. This eliminates option 4.
Hence, the correct answer is option 2.

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