Answered: The importance of institutions for…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter16: Economic Growth

Section: Chapter Questions

Problem 3E

See similar textbooks

Related questions

Question

The importance of institutions for economic growth are best explained as

a) a country's ability to take part in international cooperation

b) a proximate cause of growth

c) defining an economy's incentives for accumulating physical and human capital and for innovation

d) a country's gain from participation in international organizations

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Expert Solution

Step 1

the sustained rise in production of goods and services is called economic growth. The institutions play the critical and predominant role in driving up growth rate of economy.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions