Consider Two Countries: Country a and Country B

question 53

Multiple Choice

Consider two countries: Country A and Country B.Both countries are identical in all aspects except one.The institutions in Country A are inclusive,while the institutions in Country B are extractive.Given this information,which of the following statements is likely to be true?

• A) Country A is likely to have well-defined property rights, while Country B is likely to lack well-defined property rights.
• B) Country B is likely to have well-defined property rights, while Country A is likely to lack well-defined property rights.
• C) Both countries are likely to be totalitarian.
• D) Both countries are likely to be capitalistic.

---

Definitions:

Assets

Economic resources owned by a business or individual that are expected to bring future benefits.

Revenue

Income earned by a company from its business activities or sales, before any expenses are deducted.

Cash

Currency and coins, along with funds in bank accounts and other forms of immediately available funds.

Accounting Equation

The foundation of double-entry bookkeeping, stating that assets are equal to the sum of liabilities and owner's equity: Assets = Liabilities + Owner's Equity.