Institutions ________.
A) are mostly beyond human control
B) do not affect incentives
C) cannot be changed over time
D) place constraints on human behavior, and these constraints may not be absolute

Question

Quizplus · Accepted Answer

Institutions refer to the formal and informal rules, norms, and organizations that shape human behavior. These institutions place constraints on human behavior, but these constraints are not absolute and can be changed over time through social, political, or economic processes. Therefore, option D is the correct answer. Option A is incorrect because institutions are created and managed by humans. Option B is incorrect because institutions affect incentives by shaping the costs and benefits of different actions. Option C is incorrect because institutions can change over time.