Two social institutions that are essential for trade to be organized are___________ .

Question

Quizplus · Accepted Answer

Markets are essential for trade to happen as they provide a platform where buyers and sellers can come together and exchange goods and services. Property rights are necessary for trade as well, as they provide legal protection for the ownership and transfer of property, including goods and services. This allows individuals and businesses to have confidence in the exchange process, encouraging trade to happen. Banks and businesses may facilitate trade, but are not essential institutions for it to be organized. Laws are also important for regulating trade, but they are not a social institution in themselves.

Two Social Institutions That Are Essential for Trade to Be