Extractive economic institutions are ________.
A) found only in command economies
B) found only in market economies
C) likely to prevent entrepreneurs with new ideas from entering into the right line of business
D) likely to encourage entrepreneurs with new ideas to enter into the right line of business

Question

Quizplus · Accepted Answer

Extractive economic institutions often favor a select group of individuals or industries, making it harder for new entrants to break into the market and succeed. This can discourage entrepreneurship and innovation, particularly in less economically developed countries where extractive institutions are more prevalent.

Extractive Economic Institutions Are ________