Which of the following statements is true?
A) All market economies have inclusive institutions.
B) Inclusive institutions privilege a few at the expense of many.
C) Countries with extractive institutions encourage entrepreneurship and private ownership of property.
D) The economic institutions of a country are interlinked with the political institutions in that country.

Question

Quizplus · Accepted Answer

The economic institutions of a country and its political institutions are deeply interlinked. Political institutions help determine economic institutions, which, in turn, shape incentives and opportunities for economic activity. Extractive political institutions tend to lead to extractive economic institutions, which, in turn, inhibit economic growth, while inclusive political institutions tend to produce inclusive economic institutions that enable economic growth.

Which of the Following Statements Is True