Government corruption:

a. impedes the coordinating power of markets but does not discourage investment.

b. can neither impede the coordinating power of markets nor discourage investment.

c. impedes the coordinating power of markets and discourages investment.

d. does not impede the coordinating power of markets, but does discourage investment.

Question

Social Studies

Maeve Cannon

5 April, 00:23

Government corruption:

a. impedes the coordinating power of markets but does not discourage investment.

b. can neither impede the coordinating power of markets nor discourage investment.

c. impedes the coordinating power of markets and discourages investment.

d. does not impede the coordinating power of markets, but does discourage investment.

+1

Answers (1)

Know the Answer?

Wilkerson · Answer 1

The answer is C.

Explanation:

Government corruption impedes the coordinating activity of markets because it can inflate the costs of businesses and therefore separating them from competition. This produces a rupture within the market because competitive forces are misaligned, and thus the market will not be able to control prices. Consequently corruption also discourages investment, since trust is the key factor in deciding where to invest. If the market is uncoordinated and business are not transparent, investors are unlikely to put money in the business or country, if the government is corrupt.