The ________ claims that the way societies have organized themselves and shaped the incentives of individuals and businesses are at the root of the differences in prosperity across the world.
A) institutions hypothesis
B) culture hypothesis
C) geography hypothesis
D) location hypothesis

Question

Quizplus · Accepted Answer

The institutions hypothesis argues that the differences in prosperity across the world can be attributed to the different ways societies have organized themselves and the incentives they have created for individuals and businesses. This hypothesis suggests that well-functioning institutions, such as property rights, rule of law, and stable governance, are critical for economic growth and development. It is widely accepted by economists and social scientists as a key driver of prosperity. The culture hypothesis suggests that cultural factors, such as values and beliefs, influence economic outcomes, while the geography hypothesis focuses on the physical environment as a determinant. The location hypothesis is not a widely accepted concept in economics.

The ________ Claims That the Way Societies Have Organized Themselves