Which of the Following Statements Is True

question 12

Multiple Choice

Which of the following statements is true?

• A) All market economies have inclusive institutions.
• B) Inclusive institutions privilege a few at the expense of many.
• C) Countries with extractive institutions encourage entrepreneurship and private ownership of property.
• D) The economic institutions of a country are interlinked with the political institutions in that country.

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Definitions:

Absolute Advantage

The capacity of a person, corporation, or nation to manufacture a product or provide a service at a lower unit cost than rival entities.

Motorcycles

No real economic term; in economics context, motorcycles might be discussed concerning market dynamics, production costs, and consumer behavior in the automotive industry.

Tractors

Motor vehicles specifically designed for the purpose of agricultural tasks, including plowing, tilling, and planting fields.

Motorcycles

Two-wheeled vehicles powered by an engine, often used for transportation and recreational purposes.