Exam 8: Why Isn't the Whole World Developed?

Which of the following statements correctly highlights a difference between countries with extractive economic institutions and countries with inclusive economic institutions?

What are proximate causes of prosperity? How are they related to fundamental causes of prosperity?

When institutions do not protect private property rights,do not uphold contracts,interfere with the working of markets,and erect significant barriers to businesses and occupations,they are referred to as ________.

Creative destruction ________.

Which of the following statements is true?

Assume that you are in charge of an agrarian colony of a European nation.What are the different extractive policies that can be adopted to maximize the wealth of the home nation?

The reversal of fortune is strong evidence against the ________.

Which of the following statements is true?

Which of the following statements is true?

Explain the differences between inclusive and extractive economic institutions.

If institutions in an economy change from being inclusive to extractive,then the ________.

Which of the following statements is true of the British colonies set up in the areas of Mexico,Guatemala,and Bolivia?

Consider two economies: Economy A and Economy B.Economy A is located close to the equator and is characterized by an extreme climate.The terrain in Economy A is inhospitable,and it lacks rivers or other bodies of water in its territory.In contrast,Economy B is located in the temperate zone with a pleasant climate,fertile soil,and navigable rivers.Suppose the geography hypothesis of economic growth holds true for these economies. a)Which of the two economies is likely to be more prosperous? b)Is the difference in prosperity between the two economies likely to be sustained in the long run?

What are the two ways in which extractive institutions affect the number of entrepreneurs in a nation?

Suppose we claim that the rapid economic growth in Barylia can be attributed to the culture hypothesis.Which of the following can most likely be concluded from this claim?

A researcher claims that the slow economic growth of countries located in Africa can be attributed to the geography hypothesis.If the researcher is correct,it implies that the economic growth of countries in Africa is greatly affected by ________.

When a society's economic institutions provide secure property rights,set up a judicial system that enforces contracts and upholds the law,allow private parties to sign contracts for economic and financial transactions,and maintain relatively free entry into different businesses and occupations,the institutions in the society are said to be ________.

If the geography hypothesis holds,what will be its implication for poorer nations that have unfavorable geographic conditions?

A group of economists argue that the lack of agricultural land is a key reason for the slow economic growth of Lithasia.According to this argument,________.

If institutions in an economy change from being extractive to inclusive,then the ________ in the economy.