Economists generally define institutions as all of these,EXCEPT as a:
A) government free of corruption.
B) government that controls resource allocation.
C) legal system that enforces contracts and laws.
D) strong monetary system.

Question

Quizplus · Accepted Answer

Economists generally define institutions as the formal and informal rules and frameworks that organize societal interactions. While a strong government can be considered an institution, the statement specifies "government free of corruption," which falls under the category of rule of law, another important institution. Therefore, the only option that does not fit is B: government that controls resource allocation. This may be a function of government, but it is not an institution in and of itself.

Economists Generally Define Institutions as All of These,EXCEPT as A