Question

If the political institutions are extractive, most likely the economic institutions are:

a) Extractive
b) Inclusive
c) Market-oriented
d) Mercantilistic

Answer 1

If the political institutions are extractive, it is most likely that the economic institutions are also extractive. Extractive economic institutions are characterized by limited property rights and high levels of corruption, which hinder economic growth.

Step-by-step explanation:

If the political institutions are extractive, it is most likely that the economic institutions are also extractive (option a). Extractive economic institutions are characterized by limited property rights and high levels of corruption, which hinder economic growth. In contrast, inclusive economic institutions promote property rights, the rule of law, and fair competition, which lead to economic development and prosperity.