Which of the following institutional arrangements is most likely to promote growth?
A) patents and copyrights that expire quickly and are loosely enforced
B) strong government control over resource allocation decisions
C) unrestricted trade between nations
D) all of these

Question

Quizplus · Accepted Answer

Unrestricted trade between nations promotes growth by allowing for specialization and the efficient allocation of resources based on comparative advantage. Patents and copyrights that expire quickly and are loosely enforced may promote innovation, but they also limit competition and could hinder growth. Strong government control over resource allocation decisions can lead to inefficiencies and corruption, stifling growth.

Which of the Following Institutional Arrangements Is Most Likely to Promote