ECONOMICS
ECONOMIC INSTITUTIONS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Helps to put criminals in jail
|
|
|
Helps to cure diseases
|
|
|
Helps to provide funds for families
|
|
|
None of the above
|
Detailed explanation-1: -Economic institutions provide the opportunities to the people to earn their livelihood, through which people satisfy their basic needs. the other institutions like family, politics, education, etc. Without economic institutions these institutions cannot perform rather collapse.
Detailed explanation-2: -When economists use this term, they mean: property rights, honest government, political stability, dependable legal system, and competitive and open markets.
Detailed explanation-3: -Let us see what the basic institutions of the market economy are. We may subdivide them for convenience of discussion into (1) private property, (2) free markets, (3) competition, (4) division and combination of labor, and (5) social cooperation.
Detailed explanation-4: -The primary role of economic institutions is to meet the human needs for which they were created. In this regard, all sectors of the economy play a significant role.