Which of the following statements is true?
A) Extractive institutions are congenial to entrepreneurship.
B) Inclusive institutions are likely to support inefficient firms.
C) Inclusive institutions are more commonly found in command economies than in market economies.
D) Extractive institutions may prevent workers from working in occupations to which their skills are best suited.

Question

Quizplus · Accepted Answer

Extractive institutions limit opportunities and restrict mobility, preventing workers from using their skills to their full potential. Inclusive institutions, on the other hand, create an environment where individuals can move freely between occupations and use their skills to the maximum. A and B are false statements, and C is not true as inclusive institutions are more commonly found in market economies.

Which of the Following Statements Is True