Question

Explain why the following types of behaviour are important in a productive market economy and the role of formal and informal institutions in generating that behaviour:
(a) Lining up;
(b) Paying attention to professionals and experts;
(c) Arriving on time for work, meetings and appointments.

5. In North America and Europe, as countries developed from the late 19th to the late 20th century, social insurance (public pension) schemes, unemployment benefits, and publicly provided health care and welfare schemes became more pervasive. Over that period, the extended family was replaced by the nuclear family. Use the concepts of economies of scope and path dependency to explain why this happened and why the transformation took several generations.

Answer 1

a) Lining up is a part of good behaviour and it is a very important behavior because it shows the discipline which is a fundamental aspect of any productive market economy.

b) professionals and experts are the persons who possess the necessary skills and talents relating to a particular thing, so following them diligently will also improve the performanvce of an individulal so it is regarded as a good behaviour for a productive economy.

c) It is said that time is money so arriving for meetings and works in time shows that a person is responsible toward his duty which is actually a good productive behavior.

all these good behavioural aspects come from quality education as well as good home enviromment so that informal and formal institution play a vital role in foming this behaviour.

The social changes and social security scemes in North America and Europe are vital for the masses because it forms a social support base for all sections of people and path dependency and economies of scope play a very significant role in these  changes because there are several factors which are resistant to any changes and it takes time to change those resistant factors , so automatically all this changes are also affected and hence they take a lot of time for any transformation.