The Sound Economic Institutions and Policies Needed for Economic Growth

question 100

Multiple Choice

The sound economic institutions and policies needed for economic growth and prosperity

• A) emerge from the political process, if they emerge at all.
• B) are unaffected by political decision-making and constitutional rules.
• C) are virtually guaranteed to emerge, if democracy becomes the form of government in a nation.
• D) can only emerge from a democracy

---

Definitions:

Profit-Maximizing Price

The price level at which a company can make the most profit while selling its goods or services.

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for its product, as opposed to practicing price discrimination.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Network Effects

The phenomenon where increased numbers of users or participants improve the value of a good or service.