Which of the following statements is true?
A) The institutions governing a nation are considered proximate causes of prosperity.
B) Societal religious beliefs and existing social norms are key proximate causes of economic prosperity.
C) Cultural and geographical factors that affect economic prosperity can be changed faster than the institutional factors that affect it.
D) Institutions determine the degree to which society accumulates factors of production and adopts new technology.

Question

Quizplus · Accepted Answer

Institutions have a large role in determining the accumulation of factors of production and the adoption of new technology, as they create the incentives for individuals and firms to invest in these areas. While cultural and geographical factors may also play a role in economic prosperity, they are often harder to change than institutional factors. Societal religious beliefs and social norms may also have some impact, but they are not considered the primary proximate causes of prosperity.

Which of the Following Statements Is True