Question

Which of the following does not need to be addressed when organizing an economy?

A. The allocation of resources.
B. The distribution of goods and services.
C. The organization of production.
D. The rules of political institutions.

Answer 1

The answer is D. The rules of political institutions.

While politics can play a role in changing the economy, political institutions are not directly related with the economy itself.

Answer 2

Political institutions are organizations which create, enforce and apply laws. Sometimes, they mediate conflict, make governmental policy on the economy and social systems and otherwise provide representation for the populous.

Some of the examples of political institutions include: political parties, trade unions and courts. This term, political institutions, also refers to recognized structure of rules and principles within which the organizations operate, including concepts as the right to vote, responsible government and accountability.