can ―good institutions‖ foster growth?
I. They provide incentives for entrepreneurs to create andinnovate
II.They provide financial support for organizations to acquirehuman and physical capital
III. They establish property rights, functioning legal systems,and open markets.

Question

Quizplus · Accepted Answer

Good institutions provide incentives for entrepreneurs to create and innovate, as well as establish property rights, functioning legal systems, and open markets. These factors lead to a favorable business environment that fosters growth. Financial support for organizations to acquire human and physical capital, which is listed under option II, is important but not necessarily a determinant of growth. Therefore, option D is the best choice.

Can ―Good Institutions‖ Foster Growth