The Main Reason for the Influence of Institutions on the Wealth

question 252

Multiple Choice

The main reason for the influence of institutions on the wealth of nations is that good institutions:

• A) raise people's incentives to build wealth.
• B) keep the economy in tight control of the government.
• C) help distribute wealth more evenly among the people.
• D) allow government to more easily convert private property into collective property.

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Definitions:

Personal contacts

Direct personal interactions and connections between individuals, often used for communication, networking, or support.

Government employment

Jobs provided by federal, state, or local governments, often associated with benefits such as job security and public service.

Contagion

The process by which an idea, attitude, or behavior spreads rapidly from person to person or group to group.

Social networks

Structures formed by individuals or organizations that are connected by one or more types of interdependencies, such as friendship, kinship, common interest, or economic exchange.