Question

True or False: The term economic institution refers to the system that governs the production, distribution, and consumption of goods.

Answer 1

True.

Step-by-step explanation:

The statement is true because the banks and government institutions are economic institutions which manage the production and distribution of money, goods, and services. These economic institutions are responsible to maintain the smooth running of the economic system of a state. Economic institutions are endogenous which may because of ecology, culture, and geography.

Answer 2

This statement is generally false. Economic institutions are simply institutions or firms that contribute to the flow of a certain economy. What this posted definition is referring to is a "command economy".