Related to the Economic in Practice on page 717: Corruption often leads to more efficient firms producing the goods and services in a society.

Question

Quizplus · Accepted Answer

Although corruption may lead to some short-term gains for certain firms or individuals, in the long run it undermines economic growth, distorts the allocation of resources, and ultimately erodes trust in institutions and undermines social cohesion. Efficient firms that succeed through bribery or other corrupt practices may crowd out less corrupt but equally or more efficient firms, leading to a less competitive and less dynamic economy. Therefore, corruption does not lead to more efficient firms producing goods and services in a society.

Related to the Economic in Practice on Page 717: Corruption