Q9. Which of the following is least likely to be considered as one of the three social institutions that are critical to the development of an incentive system?

A)   Markets.

B)   Property rights.

C)   A specific form of political organization.

Q10. Which of the following most completely identifies the institutions in an economy that are necessary for markets to be effective?

A)   Property rights and a supporting legal system.

B)   Property rights and monetary exchange.

C)   A legal system and a central banking system.

答案和详解如下：

Q9. Which of the following is least likely to be considered as one of the three social institutions that are critical to the development of an incentive system?

A)   Markets.

B)   Property rights.

C)   A specific form of political organization.

Correct answer is C)

The three social institutions that are critical to the development of incentives are markets, property rights, and monetary exchange. Collectively, these three social institutions create incentives for people to specialize and trade, save and invest, and discover new technologies. A specific form of political organization is not necessary for economic growth as communist and authoritarian countries have experienced economic growth.

Q10. Which of the following most completely identifies the institutions in an economy that are necessary for markets to be effective?

A)   Property rights and a supporting legal system.

B)   Property rights and monetary exchange.

C)   A legal system and a central banking system.

Correct answer is B)         

For markets to be effective, property rights and monetary exchange are required. If property rights are properly established and enforced, people will be assured that government will not confiscate their savings and investments. Monetary exchange provides for the efficient exchange of goods and services.

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