Question

Which of the following statements about the role of institutions in economic growth is TRUE and which of the following statements is FALSE? Explain. a) Higher expropriation risk due to low-quality governance and poor institutions might account for low levels of human and public capital in poor nations.b) The quality of institutions in countries colonized by Europeans is correlated with whether climate/disease allowed European settlers to live in those areas. c) Low-quality institutions make it difficult to protect property rights and enforce contracts. d) Low-quality institutions are central to the theory of poverty traps that states that countries need a "big push" to facilitate convergence in living standards to the developed world.

Answer 1

Answer:

Explanation:

(a) Expropriation has Truly been a major concern for the Government through out the globe, as the when an entity or body which is supposed to work for the good of the poor people by making use of the Government property starts dealing in illegal ways to grab it as private or work on other properties which are private in nature,

b) The European invasion of the many countries across the globe had initially been to gain ,more and more wealth and power through business.

However, it is true that the quality of the institutions colonized by the Europeans is related to whether the climate or the diseases in the colonized regime allowed the European settlers to live in those areas.

(c) It is true that the low quality institutions make it difficult to protect property rights and enforce contracts. The rights of the people are all dependent on how the State allows the people to enjoy them.  

(d) It is true that the low-quality institutions are central to the theory of poverty traps that states that countries need a big push to felicitate convergence in living standards to the developed world.