Which Are True Regarding Informal Constraints

question 19

Short Answer

Which are true regarding informal constraints?
a. When formal institutional constraints fail, informal constraints tend to fail as well.
b. Following the collapse the former Soviet Union, informal constraints were unable to facilitate growth of entrepreneurial firms.
c. Even in developed economies, the best-connected firms can reap significant benefits.
d. All of the above.
e. None of the above.

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Definitions:

Comparative Advantage

The principle that a country, individual, or company has over another in producing a particular good or service at a lower opportunity cost, allowing for beneficial trade and specialization.

Industrial North

The region in a country, historically in the United States, known for its heavy industry and manufacturing, contrasting with the agrarian South.

Protective Tariffs

Tariffs imposed by a country to protect its domestic industries from foreign competition by increasing the cost of imported goods.

Trade Deficit

A situation that occurs when a country imports more goods and services than it exports.