If an economic agent's returns to entrepreneurship is likely to be lower than his opportunity cost of entrepreneurship:
A) he will choose to be an entrepreneur.
B) he will always make profits if he chooses to be an entrepreneur.
C) he will always make losses if he chooses to be an entrepreneur.
D) he will not choose to be an entrepreneur.
D
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What is the distinction between nominal GDP and real GDP?
What will be an ideal response?
In the neoclassical growth model, the rate of technological process is:
a. 2 percent. b. 0 percent. c. exogenous and not explained. d. endogenous and explained by human capital accumulation.
If a bank has $1 million in assets and $50,000 in net worth, its liabilities must equal: a. $50,000
b. $1,050,000. c. $50 million. d. $1,000,000. e. $950,000.
To compensate for the possibility of indirect crowding? out, a government engaging in expansionary policy aimed at eliminating a recessionary gap could
A) reduce taxes rather than increase government spending.
B) increase spending less than the simplest Keynesian model would predict.
C) both reduce taxes and reduce spending to be able to achieve full employment.
D) increase spending more than the simplest Keynesian model would predict.