Compared to an economy with extractive institutions,an economy with inclusive institutions will be characterized by ________.
A) higher output and fewer entrepreneurs
B) lower output and more entrepreneurs
C) higher output and more entrepreneurs
D) lower output and fewer entrepreneurs

Question

Quizplus · Accepted Answer

In an economy with inclusive institutions, there is a better protection of property rights and a more level playing field for competition. This creates an environment that rewards innovation, hard work, and entrepreneurialism, leading to higher output and more entrepreneurs. Conversely, an economy with extractive institutions has a higher likelihood of corruption and rent-seeking, leading to a stifling of economic growth and fewer opportunities for entrepreneurs.

Compared to an Economy with Extractive Institutions,an Economy with Inclusive