High-income economies generally have _____ that incentivize individuals' self-interest by using _____.

Question

Quizplus · Accepted Answer

High-income economies generally have institutions that incentivize individuals' self-interest by using profit-seeking motives. These institutions can include market-based systems, such as competition and property rights, that encourage individuals and businesses to innovate and produce goods and services efficiently. Legal penalties may also be used in some cases, but it is the overall institutional framework that encourages productive behavior in high-income economies. The other choices (B and C) do not accurately describe the typical characteristics of high-income economies.

High-Income Economies Generally Have _____ That Incentivize Individuals' Self-Interest by Using