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How are well-designed institutions crucial to well-functioning markets and vice-versa? Explain their linkages and any feedback...

  1. How are well-designed institutions crucial to well-functioning markets and vice-versa? Explain their linkages and any feedback effects that are important.
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A market widely consistute large number of institutions such as school, hospitals, charitable organizations, colleges, universities etc... According to the demand these eccupy goods from the market. Largely setuped institutions constitute large number of people, for the well functioning of these institutions they need lot's of resources. Considering an example: school consist of large number students and some other staffs. so day to day process in school requires electricity, water, food etc These goods are coming from the market. Then we can say that "well designed institutions is crucial to market and vice versa".market increases when institutions working more days. Market can diminish when institutions shut for more days. eg:during lock down - covid 19 crisis, according to the shut down of several institutions, market economy contracts.

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