Institutions and incentives are ____________ causes and factors of productions are ________ causes of wealth of nations.

Question

Quizplus · Accepted Answer

Institutions and incentives are considered ultimate causes of the wealth of nations because they shape the rules and regulations of the economy and influence the behavior of individuals and firms. On the other hand, factors of production (such as labor, capital, and natural resources) are proximate or direct causes of wealth because they are directly involved in the production process.

Institutions and Incentives Are ____________ Causes and Factors of Productions