The function of economic institutions is to:
A)determine the profit margin of producers.
B)determine how much an economy benefits from trade.
C)define the environment in which we can trade.
D)define the terms of trade between nations.

Question

Quizplus · Accepted Answer

Economic institutions are created to define the environment in which trade can occur. They set the rules and regulations that govern how individuals can participate in economic activities, and they provide the framework for property rights, contracts, and markets. This allows trade to take place in a more predictable, stable, and efficient manner. The other choices (A, B, and D) are important outcomes of economic institutions but are not the primary function.

The Function of Economic Institutions Is To