Question

Prior to 1914, Argentina experienced around fifty years of economic growth. During that time, Argentina was ruled by a small amount of elite that was invested in agricultural exports. Thus, the economy grew by exporting beef and grain during a worldwide economic boom surrounding these commodities. The broadening of the political landscape following WWI and subsequent repeated military coups changed the leaders, but made the economic landscape increasingly unstable.
This period of growth is a classic example of economic growth under what system?

a. Rule by Law
b. Extractive institutions
c. The vicious circle
d. Inclusive Institutions

Answer 1

Answer: Option (B)

Explanation:

The period of growth exhibited by Argentina is referred to as the classic example of their growth under Extractive institutions.  Extractive institutions referred to as the means under which a small organization or group of individuals tend do exploit the population of a nation. Under this case the small group of elites that were ruling Argentina and thus further investing in export of agricultural products,thus effecting Argentina and its population.