ECON-2006EG Study Guide - Quiz Guide: Economic Freedom, Capital Market, Human Capital

• School: Laurentian
• Department: Economics / Science Èconomique
• Course: ECON-2006EG
• Professor: Byron Eastman

Document Summary

Give the definition, explain, why are they important for economic performance and continue in some of many directions we have opened in this course. Informal: trust ethics authority attitude towards innovation, saving and profit. By increasing the quality of institutions transaction costs and corruption can be decreased. Institutions are a network of rules, regulations and enforcement systems. Institutions are a good way to determine the level of economic development of a country. For example institutions are important for innovation, in a way that they provide a place for human creativity, force businesses to innovate or go bankrupt and provide a well functioning economy. Role of politics and ideology: market capitalism pros and cons. Economic growth (incentives for innovation and working hard) Works best for private goods, not for other goods. Incomplete information: command socialism pros and cons. Do not forget to make a short comparison with other systems. Index of economic freedom gives basic measurement for countries.