According to institutional economists, which mechanism improves the efficiency of markets?
A) unregulated trade
B) unions with bargaining rights
C) macroeconomic policy
D) wealth creation

Question

Quizplus · Accepted Answer

Institutional economists argue that mechanisms such as unions with bargaining rights can improve the efficiency of markets by addressing power imbalances between workers and employers, leading to fairer wages and working conditions, which can contribute to a more stable and productive economic environment.

According to Institutional Economists, Which Mechanism Improves the Efficiency of Markets