Geography and Factor Endowments

Question 1

Horizontal bonds

Answer 1

Social structures are formed to solve collective action problems through trust and cooperation

Question 2

Vertical bonds

Answer 2

There’s dependency rather than trust, so institutions are never formed to solve collective action problems

Question 3

WEIRD

Answer 3

Western educated industrialised rich and democratic

Question 4

Resource curse

Answer 4

Countries with large natural resource exports have worse GDP per capita than resource-poor countries (Africa v Asian Tigers; UAE?)