How does the centrality of institutions and property rights in economic growth help to explain the predominance of rich countries in temperate climates and of poor countries in the tropics?

What will be an ideal response?

Legal systems in most countries throughout the world are a legacy of European colonialism. Economic growth in any country seems to depend a great deal on how the "average person" is treated by the legal system. In the tropics, generally, legal systems were designed to favor the tiny European minority, rather than the "average person." Even now, these systems tend to protect the elite, rather than to provide opportunities for others. By contrast, in temperate locations where large numbers of Europeans and their descendants exceeded the indigenous populations, legal systems were designed to restrict the power of the elite, which has promoted the economic potential and ambitions of the majority of citizens.

Economics

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If UIP holds, the foreign interest rate is 10%, and the home currency is expected to depreciate by 4%, then the home interest rate is:

a. 4% b. 6% c. 10% d. 14%

Economics

When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of

A) a market mechanism. B) macroeconomics. C) opportunity cost. D) a fallacy of composition.

Economics