What is meant by the “institutional framework” of an economy?

CA Foundation · Business Economics · MTP · June 2024
What is meant by the “institutional framework” of an economy?
(A) A. The maximum capacity of the economy in the production process
(B) B. The level of investment in human capital
(C) C. The system of formal laws, regulations and procedures that shape economic activity in the economy
(D) D. Subsidies and tax concessions used to improve employment opportunities in assisted areas of the economy

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. The system of formal laws, regulations and procedures that shape economic activity in the economy

Topics: Indian Economy

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