What are institutions? What is the institutions hypothesis of economic growth?
What will be an ideal response?
Institutions are the formal and informal rules governing the organization of society, including its laws and regulations. The institutions hypothesis claims that differences in institutions, that is, the way in which societies have organized themselves and shaped the incentives of individuals and businesses, are at the root of the differences in prosperity across the world.
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A perfectly elastic demand curve has a price elasticity of demand coefficient of:
a. zero. b. 1. c. greater than 1, but less than infinity. d. less than 1, but greater than zero. e. infinity.
Which of the following monetary policies would be appropriate to close a recessionary gap?
a. A tax cut b. A decrease in government purchases c. An increase in reserve requirements d. The Fed's purchase of U.S. government securities e. The Fed's raising the discount rate