Economists theorise that in a country where pre-existing political structures distort or limit the workings of the market mechanism, corruption in the form of _____________________, smuggling and side payments to government bureaucrats may enhance welfare.

Question

Quizplus · Accepted Answer

Black-marketeering, smuggling, and side payments to government bureaucrats can enhance welfare in contexts where pre-existing political structures distort or limit the workings of the market mechanism, as these activities can help to circumvent restrictions and facilitate market transactions.

Economists Theorise That in a Country Where Pre-Existing Political Structures