Growth-promoting institutional structures include the following, except
A) patents and copyrights.
B) eﬃcient ﬁnancial institutions.
C) protection of domestic ﬁrms from foreign rivals.
D) a stable political system.

Question

Quizplus · Accepted Answer

Protection of domestic firms from foreign rivals is not a growth-promoting institutional structure. In fact, protecting domestic firms from foreign competition can lead to inefficiencies and hinder growth in the long term. Instead, free and fair competition stimulates innovation, efficiency, and growth. The other options, patents and copyrights, efficient financial institutions, and a stable political system, all facilitate economic growth.

Growth-Promoting Institutional Structures Include the Following, Except