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.

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Definitions:

Threat of Rejection

The possibility of being denied acceptance or approval in a particular situation, often causing anxiety or influencing behavior.

Threat of Rejection

The possibility of being rejected which can influence behavior or choices, often discussed in social or economic contexts.

Ultimatum Game

A game in economic experiments where one player proposes how to divide a sum of money with another player who can accept or reject the proposition.

Dictator Game

A behavioral experiment where one participant, the "dictator," determines how to split an amount of money between themselves and another participant.