Consider two countries: Country A and Country B.Both countries are identical in all aspects except one.The institutions in Country A are inclusive,while the institutions in Country B are extractive.Given this information,which of the following statements is likely to be true?
A) Country A is likely to have well-defined property rights, while Country B is likely to lack well-defined property rights.
B) Country B is likely to have well-defined property rights, while Country A is likely to lack well-defined property rights.
C) Both countries are likely to be totalitarian.
D) Both countries are likely to be capitalistic.

Question

Quizplus · Accepted Answer

Inclusive institutions typically ensure well-defined and secure property rights, while extractive institutions often involve the concentration of power and resources in the hands of a few, leading to poorly defined and insecure property rights. Therefore, Country A is likely to have well-defined property rights, while Country B is likely to lack them.

Consider Two Countries: Country a and Country B