Which of the Following Is True of Economic Rules and Institutions

question 48

Multiple Choice

Which of the following is true of economic rules and institutions?

• A) When the rules and institutions of a country encourage productive actions, investment will be attracted and incomes will grow.
• B) When the rules and institutions of a country discourage productive actions, investment will be attracted and incomes will grow.
• C) Economic analysis indicates that rules and institutions do not exert much impact on investment and the growth of income.
• D) Rules and institutions influence high-income economies, but there is no evidence that they exert an impact on investment, growth, and the overall performance of low-income economies.

---

Definitions:

Weeks Of Supply

A measure of inventory management that indicates how many weeks' worth of inventory is on hand, based on current sales rates.

Inventory

The total quantity of goods or materials held by a business for the purpose of sale or production.

E-Procurement

The use of online systems and tools to conduct the purchasing process and acquire goods and services for a business, aiming to improve efficiency and reduce costs.