One institutional explanation for the origins of sustained
economic development in Europe is that:
a. these countries earned enough from their colonies to jump-start sustained economic growth.
b. European religious institutions provided models for how to manage large companies.
c. profits from trade gave European merchants the economic and political power to demand institutional changes necessary for economic growth.
d. the capitalist class used state institutions to exploit labor and make high profits necessary for sustained growth.
Question 2
Institutionalists argue that a main reason Canada and the
United States became highly developed, in comparison with many less economically developed former colonies, is that they:
a. had richer mineral resources, given their large territories and geographic diversity.
b. had more fertile soil than most former colonies.
c. were both colonies of Great Britain, which founded democratic institutions worldwide.
d. had large numbers of European settlers, not directly tied to a commodities or forced labor economy, who adopted growth-promoting institutions.
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