One Explanation for Greater Economic Development in Moderate Versus Tropical

question 39

Multiple Choice

One explanation for greater economic development in moderate versus tropical climates is that institutions established by colonial settlers in moderate climates ______, while institutions established by colonists in tropical climates ______.

• A) were based on English common law; were based on the Napoleonic Code
• B) were based on the Napoleonic Code; were based on English common law
• C) protected property rights; were extractive and authoritarian
• D) were extractive and authoritarian; protected property rights

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Definitions:

Inflation Rate

The rate at which the general level of prices for goods and services is rising, subsequently eroding purchasing power.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the individual values in a data set differ from the mean.

Standard Deviation

Standard deviation is a statistical measure of the dispersion or variability of a set of data points around the mean.

Expected Return

The average of all possible returns from an investment, weighted by their respective probabilities.