Institutions that promote economic growth include:

Question

Quizplus · Accepted Answer

Policies that provide incentives for people to produce and trade are critical for economic growth. When people are incentivized, they are motivated to work harder, innovate and produce more goods and services, which ultimately leads to economic growth.

Answer: B
 Extent of government control in markets is another important factor that promotes economic growth. Too much government control in markets can stifle innovation, entrepreneurship and productivity, whereas too little control can lead to market failure. Therefore, a balance needs to be struck in providing an enabling environment for market participants to operate.

Answer: D
 Government can provide goods and services such as infrastructure and education, which can lead to an increase in economic growth. However, the amount of goods and services that are provided by the government should be balanced as too much may lead to inefficiency and corruption, which may impede economic growth.

Overall, any combination of the above-mentioned choices could also be correct as each factor is significant in promoting economic growth.

Institutions That Promote Economic Growth Include