How does the centrality of institutions and property rights in economic growth help to explain the predominance of rich countries in temperate climates and of poor countries in the tropics?
What will be an ideal response?
Legal systems in most countries throughout the world are a legacy of European colonialism. Economic growth in any country seems to depend a great deal on how the "average person" is treated by the legal system. In the tropics, generally, legal systems were designed to favor the tiny European minority, rather than the "average person." Even now, these systems tend to protect the elite, rather than to provide opportunities for others. By contrast, in temperate locations where large numbers of Europeans and their descendants exceeded the indigenous populations, legal systems were designed to restrict the power of the elite, which has promoted the economic potential and ambitions of the majority of citizens.
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The short run is the time frame
A) during which the quantities of all resources are fixed. B) that is less than a year. C) during which the quantities of some resources are fixed. D) during which the quantities of all resources are variable. E) during which all costs are implicit costs.
Financial aid to college students, quantity discounts, and senior citizen discounts are all examples of
a. consumer surplus. b. deadweight loss. c. price discrimination. d. nonprofit pricing strategies.
Suppose firms in an industry hire unskilled labor and skilled labor. Unskilled labor is a substitute for capital and skilled labor is a complement with capital. A decrease in the real price of capital would
A. cause the demand for labor to increase, raising wages of both skilled and unskilled labor. B. cause the demand for unskilled labor to increase and the demand for skilled labor to decrease. The wage of unskilled labor would rise relative to the wage of skilled labor. C. cause the demand for both kinds of labor to decrease. Wages rates of both kinds of labor would decrease too. D. cause the demand for unskilled labor to decrease and the demand for skilled labor to increase. The wage of unskilled labor would decrease relative to the wage of skilled labor.
A price index that tends to be a leading indicator of future inflation rates is the
A. GDP price index. B. retail price index. C. producer price index. D. consumer price index.