When a society's economic institutions provide secure property rights,set up a judicial system that enforces contracts and upholds the law,allow private parties to sign contracts for economic and financial transactions,and maintain relatively free entry into different businesses and occupations,the institutions in the society are said to be ________.
A) inclusive
B) extractive
C) exclusive
D) exogenous

Question

Quizplus · Accepted Answer

When a society's economic institutions provide secure property rights, set up a judicial system that enforces contracts and upholds the law, allow private parties to sign contracts for economic and financial transactions, and maintain relatively free entry into different businesses and occupations, the institutions in the society are said to be inclusive. Inclusive institutions promote economic growth and development by providing a level playing field for all individuals and businesses to participate in the economy. In contrast, extractive institutions favor a small group of elites, limit economic opportunities, and discourage innovation and entrepreneurship. Exclusive institutions restrict the participation of certain individuals or groups and limit economic opportunities based on factors such as race, gender, ethnicity, or social class. Exogenous refers to factors that originate outside a given system or model, and is not directly related to the question posed.

When a Society's Economic Institutions Provide Secure Property Rights,set Up