Which of the following statements correctly highlights a difference between countries with extractive economic institutions and countries with inclusive economic institutions?
A) Entry barriers for new businesses are likely to be higher in countries with extractive economic institutions than in countries with inclusive economic institutions.
B) Entry barriers for new businesses are likely to be lower in countries with extractive economic institutions than in countries with inclusive economic institutions.
C) Countries with extractive economic institutions typically have worse geographical conditions compared to countries with inclusive economic institutions.
D) Countries with extractive economic institutions typically have better geographical conditions compared to countries with inclusive economic institutions.

Question

Quizplus · Accepted Answer

Countries with extractive economic institutions tend to have high entry barriers for new businesses, often due to a concentration of wealth and power in the hands of a small elite group. In contrast, countries with inclusive economic institutions have lower entry barriers, encourage competition, and support the growth of businesses, which is key to long-term economic growth.

Which of the Following Statements Correctly Highlights a Difference Between