Which of the following is a characteristic of the 'New Institutional Economics' approach?
A. It emphasises the role of institutions, property rights and transaction costs in economic performance
B. It ignores institutions completely
C. It focuses only on technological change
D. It assumes zero transaction costs always
Answer: Option A
Solution (By JKSSB Mock Tests)
New Institutional Economics, associated with Coase, North and Williamson, analyses how institutions, property-rights structures and transaction costs shape economic behaviour and long-run performance.
Explanation:
GST is a destination-based, multi-stage indirect tax levied on the supply of goods and services, administered jointly by the Centre and the States.
Explanation:
Okun's Law describes the empirical relationship between unemployment and the output gap: a rise in unemployment is associated with a fall in actual output relative to potential output.
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