What is the primary role of an institutional framework in a developing economy?
The Role of Institutions in Developing Countries

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Business, Social Studies
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11th Grade - University
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Hard
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10 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
To manage foreign investments
To create incentives for economic activity
To regulate international trade
To control inflation rates
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why are property rights important in a legal system?
They ensure government control over assets
They provide incentives for asset development
They increase tax revenue
They limit foreign investment
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a common consequence of a weak legal system in developing countries?
Improved public infrastructure
Stronger property rights
Increased foreign investment
Higher levels of corruption
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which factor contributes to the prevalence of corruption in developing countries?
High levels of democracy
Strong legal accountability
Lack of freedom of speech
High politician salaries
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does corruption affect tax revenue in developing countries?
It stabilizes tax rates
It reduces tax revenue
It has no effect on tax revenue
It increases tax collection
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a major challenge for the financial system in developing countries?
High savings rates
Low savings rates
Excessive foreign investment
Strong banking regulations
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why are savings rates typically low in developing countries?
Low individual incomes
Lack of banking facilities
High levels of disposable income
Government restrictions on savings
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