Among the most powerful institutions for supporting good incentives are: I. property rights. II. political stability. III. honest government.

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All three choices are powerful institutions for supporting good incentives. Property rights provide individuals and businesses with the security and incentive to invest in and improve their assets. Political stability creates an environment where individuals and businesses can plan for the long term without fear of abrupt changes in policy or government. Honest government ensures that individuals and businesses can trust in the rule of law, and that regulations and policies are applied fairly and consistently. Together, these three institutions create a stable and predictable environment that supports good incentives for investment, innovation, and economic growth.

Among the Most Powerful Institutions for Supporting Good Incentives Are