If institutions in an economy change from being extractive to inclusive,then the ________ in the economy.
A) returns to entrepreneurship will increase
B) returns to education will decrease
C) geographical conditions will improve
D) geographical conditions will deteriorate

Question

Quizplus · Accepted Answer

When institutions become inclusive, it means that there is a level playing field for entrepreneurship and individuals with good ideas and skills can now become successful. This leads to higher returns to entrepreneurship as opportunities increase. Returns to education may remain the same or increase as the economy becomes more developed and in need of a skilled workforce. Geographical conditions are unlikely to be affected by a change in institutions.

If Institutions in an Economy Change from Being Extractive to Inclusive,then