Question

Why are institutions important in a society? Select all that apply. They are constantly changing depending on people's needs. They provide structure and stability to the society. They are needed to keep society going. They are needed to keep society running efficiently.

Answer 1

They order and structure the behavior of individuals by means of their normative character. They also structure incentives in human exchange, whether political, social or economic”. Institutions comprise for example contracts and contract enforcement, protection of property rights, the rule of law, government bureaucracies, financial markets.

Answer 2

The correct answers are B) They provide structure and stability to the society and D) They are needed to keep society running efficiently.

Institutions are important in a society because they provide structure and stability to society and they are needed to keep society running efficiently.

Institutions remain even when people continually pass by. People come and go, but institutions remain for a long, long time. Institutions serve people's purposes and are important components of society and government. Institutions have the infrastructure and power that an individual alone, does not have.