Question

Based on the institutional approach to economic development and​ growth, which of the following would not be stressed as important in determining a​ country's ability to raise its per capita​ GDP?

Monetary stability

B.

Foreign aid

C.

A​ well-developed, honest judicial system

D.

Curtailing corruption

Answer 1

Ans.
The correct option is A. According to the institutional approach of economics for growth and development, the political institution and environment is an important element which helps the country to develop. When the government and its system are accurate and disciplined then it will be easier for the country to grow. The monetary stability explains the financial balance and stability of the country, which is an essential part of GDP of a country but shall not be included in determining the country's ability to raise its GDP, as per the institutional approach. While, foreign aid, honest and a well developed judicial system and curtailing corruption are the conditions which shall make the system of the government stronger, and help in determining the ability of the country to raise its GDP.