Explain what entrepreneurship is and why it is considered a factor of production
What will be an ideal response?
Entrepreneurship is the resource (the people) that runs businesses. Entrepreneurs organize the other resources, land, labor, and capital. It is a factor of production because people with the desire and talent to successfully organize a business are needed to run businesses.
You might also like to view...
As interest rates rise, other things equal,
A) investment decreases. B) money demand decreases. C) capital inflows increase. D) All of the above.
If the price level increases, we would expect consumers to
a. raise their consumption functions. b. move downward along their consumption functions. c. lower their consumption functions. d. move upward along their consumption functions.
Keynes believed equilibrium income was:
A. not fixed at the economy's potential income. B. always below the economy's potential income. C. fixed at the economy's potential income. D. always above the economy's potential income.
A good is said to be "normal" if:
A. it is of high quality. B. consumers buy more of it at a high price. C. it has few substitutes. D. it has a positive income elasticity of demand.