Nobel Prize 2024 in Economics awarded to Daron Acemoglu, Simon Johnson and, James Robinson. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2024 For studies of how institutions are formed and affect prosperity.
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Nobel Prize 2024 in Economics winners provided an explanation for why some countries are rich and others poor. They provided new insights into why there are such vast differences in prosperity between nations. One important explanation is persistent differences in societal institutions. By examining the various political and economic systems introduced by European colonisers, Daron Acemoglu, Simon Johnson and James Robinson have been able to demonstrate a relationship between institutions and prosperity. They have also developed theoretical tools that can explain why differences in institutions persist and how institutions can change.
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Practice MCQs:
1. What key concept did the 2024 Nobel Economics laureates, Daron Acemoglu, Simon Johnson, and James Robinson, focus on in their research?
(A) Global trade policies
(B) The relationship between institutions and prosperity
(C) Cryptocurrency and economic growth
(D) The effects of climate change on GDP
Answer: (B) The relationship between institutions and prosperity
Explanation: Their research highlighted how differences in societal institutions explain the vast disparities in prosperity between nations.
2. What historical context did Acemoglu, Johnson, and Robinson use to explain the role of institutions in economic prosperity?
(A) The Industrial Revolution
(B) The Space Race
(C) The Cold War
(D) European colonization
Answer: (D) European colonization
Explanation: They examined how different political and economic systems introduced by European colonizers affected institutional development and prosperity in various regions.
3. According to the 2024 Nobel Prize winners in Economics, which factor is crucial in explaining why some countries remain poor while others are prosperous?
(A) Differences in societal institutions
(B) Access to natural resources
(C) Population growth rates
(D) Levels of foreign investment
Answer: (A) Differences in societal institutions
Explanation: Persistent differences in political and economic institutions were found to be a significant reason for the wealth gap between countries.
4. In their studies, Acemoglu, Johnson, and Robinson also contributed to which area of economic theory?
(A) Market equilibrium
(B) Monetary policy
(C) Institutional persistence and change
(D) Inflation control mechanisms
Answer: (C) Institutional persistence and change
Explanation: They developed theoretical tools to explain why institutional differences persist over time and how institutions can change to promote prosperity.
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