QUESTION

a) Explain what it means by "institution" according to Institutionalist School and why they emphasize on the "role of institutions" in economic decision making and not "individuals" like Marginalist School. (10 marks)

b) By using an example, explain why John Kenneth Galbraith in his "dependence effect" theory did not agree with the Neoclassical theory that consumers buy goods and services in the market in response to their "personal desires or demand". (10 marks)