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An institution is a significant practice, relationship, or organization in a society. institutions shape the environment in which decisions are made, and they affect production and income in a nation. the most significant institutions are private property rights, political stability and the rule of law, open and competitive markets, efficient taxes, and stable money and stable prices. complete each of the following sentences with the correct institution. a. the single greatest incentive for voluntary production is the existence ofprivate property rights .b. political stability and the rule of law increase investment in physical and human capital because they increase the predictability of future payoffs. c. specialization is more likely to occur in nations withopen and competitive markets and result in more efficient production because of economies of scale. d. the xiaogang agreement that led to an agricultural boom in china is an example of the power ofprivate property rights .
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