Final answer:
The researcher's claim is based on the institutions hypothesis, which credits economic prosperity to the role of institutions in maintaining the rule of law and property rights, leading to effective market operations and growth. The correct option is c. institutions hypothesis.
Step-by-step explanation:
The researcher's argument that the standards of law and order are the basis of the economic prosperity of a certain country is based on the institutions hypothesis. According to this hypothesis, the framework of formal institutions such as the legal system, property rights, and enforcement of contracts is crucial for economic growth.
In economics, institutions are organizations with a set of rules and practices that inform their members about their relationships with one another and how they should interact. Therefore, when these institutions uphold the rule of law and property rights, they create an environment where markets can operate effectively and economic prosperity can flourish.
Conversely, the absence of a robust legal system and the protection of property rights correlate with poor economic performance, as evidenced by countries with low rankings in the World Bank's legal system scale and consequent low GDP.