Which of the following is not true of institutions?
A) Institutions affect incentives.
B) Institutions are permanent and cannot be changed over time.
C) Institutions act as constraints on the behavior of economic agents.
D) Institutions are determined by individuals as members of society.

Question

Quizplus · Accepted Answer

Institutions can change over time as societies and economies evolve. While some institutions may be long-lasting or difficult to change, they are not inherently permanent and may be subject to reform or transformation.

Which of the Following Is Not True of Institutions