28. Extractive economic institutions are ones that:
a. involve extraction of oil and minerals and mining.
b. enable political leaders to concentrate power in their own hands.
c. grew from European colonization of less developed nations.
d. transfer a nation’s income and wealth to a small elite.
explanations for why some countries are more economically developed than others.
Topic: Why Did Some Countries Become More Economically Developed Than Others:
Institutions
Difficulty Level: Easy
Skill Level: Understand the Concepts
29. 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.
explanations for why some countries are more economically developed than others.
Topic: Why Did Some Countries Become More Economically Developed Than Others:
Institutions
Difficulty Level: Moderate
Skill Level: Understand the Concepts
30. 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.
explanations for why some countries are more economically developed than others.
Topic: Why Did Some Countries Become More Economically Developed Than Others:
Institutions
Difficulty Level: Difficult
Skill Level: Apply What You Know
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