If two countries are initially at the same level of development, the institution of well-functioning markets can allow one country to develop faster than the other.

Question

Quizplus · Accepted Answer

The institution of well-functioning markets can lead to efficient allocation of resources, increased productivity, and higher economic growth. This can lead to one country developing faster than the other, even if they were initially at the same level of development.

If Two Countries Are Initially at the Same Level of Development