In developing economies,informal institutions tend to play a greater role than in developed economies,possibly because
A) the developing economies have more ambiguity and lack formal institutions by definition, so informal institutions step into the breach.
B) developing economies show cultural preference for informality.
C) these economies have not learned about formal institutions.
D) informal institutions are less expensive to develop.

Question

Quizplus · Accepted Answer

In developing economies, informal institutions emerge to give order to the unstructured, chaotic environment.

In Developing Economies,informal Institutions Tend to Play a Greater Role