Final answer:
An example of an exclusionary economic institution is the prevalence of crony capitalism or mercantilism, which creates an uneven playing field through improper political influence and limits market competition. so, option c is the correct answer.
Step-by-step explanation:
An example of an exclusionary economic institution is c) Prevalence of crony capitalism or mercantilism. In the context of regulations within an economy, these practices represent scenarios where the rules of the game are skewed to benefit certain groups over others, often through improper political influence. This leads to an uneven playing field, contrary to the ideally minimal regulations that promote well-functioning markets and ensure safety, legality, and fairness in transactions. Exclusionary institutions like crony capitalism create barriers to entry and limit competition, which can weaken the broader economic system and often result in inefficient outcomes.
An example of an exclusionary economic institution is crony capitalism or mercantilism. In these systems, economic power and opportunities are often concentrated in the hands of a few select individuals or companies, excluding others from benefiting or participating fully in the economy. Crony capitalism refers to a system where close relationships between business and government officials result in preferential treatment for certain businesses, while mercantilism is an economic policy that aims to accumulate wealth and strengthen the economy through restricted trade and protectionist practices.