Question

The top-down view of institutions argues that:

Answer 1

Answer:

The correct answer is a) institutions are created by domestic leaders and legislators who govern and establish laws.

Explanation:

In Economic Development literature, there are two predominant, contrasting views of the nature of institutions. On one side, the top-down view refers to institutions as determined by laws written by political leaders. On the other side, the bottom-up perspective defines institutions as emerging from social norms, traditions, values and beliefs held by individuals within a society. Both views have very different implications on economic policies and structures and the way optimal institutions must be built.