Good Institutions

question 210

Multiple Choice

Good institutions:

• A) reward those who create value and increase efficiency with higher profits.
• B) distribute wealth evenly across the economy.
• C) result in growth rates approximately equal to those in countries with poor institutions.
• D) matter only if the country has a large amount of both physical and human capital.

---

Definitions:

Accord and Satisfaction

Resolution of a debt obligation where the debtor offers payment lower than the total amount due and the creditor agrees, thereby settling the dispute.

Compensatory Damages

Monetary compensation awarded to a plaintiff to cover losses or injuries that result from the defendant's actions.

Legal Damages

Financial compensation ordered by a court for harm or injury suffered due to another party's acts or omissions.

Monetary Damages

Financial compensation awarded to a person as restitution for loss or injury caused by the unlawful acts of another.