What are the two ways in which extractive institutions affect the number of entrepreneurs in a nation?
What will be an ideal response?
The presence of extractive institutions reduces the number of entrepreneurs in a nation in two ways:
a) They create insecure property rights and fail to provide proper legal back up to businesses, and reduce profitability.
b) They create entry barriers discouraging entrepreneurs from starting companies that would compete and innovate in the market.
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According to your text, the plans of all buyers and sellers would always be perfectly coordinated under
A) perfectly competitive market conditions. B) imperfectly competitive market conditions. C) monopolized market conditions. D) oligopolized market conditions. E) any market condition.
The exchange rate converts
a. one currency value to another b. labor units to output units c. miles to kilometers d. physical capital units to human capital units e. none of the above
Refer to the table below. If at the current advertising level, A = $9,800, B = $15,000, and C = $8,200, to maximize profit, which of the following should the firm do?
The table above shows the current costs for a firm to advertising on the radio, television, and newspaper.
A) The firm should decrease its advertising on the television and increase its advertising in newspapers.
B) The firm should decrease its advertising on the radio and increase its advertising in newspapers.
C) The firm should decrease its advertising on the radio and decrease its advertising in newspapers.
D) The firm should increase its advertising on the television and decrease its advertising in newspapers.
What will you conclude about a regression model if the Breusch-Pagan test results in a small p-value?
A. The model contains homoskedasticty. B. The model contains heteroskedasticty. C. The model contains dummy variables. D. The model omits some important explanatory factors.