How do entry barriers hamper economic prosperity?
What will be an ideal response?
Entry barriers discourage the entry of new firms into businesses. Thus, the existence of entry barriers is likely to support inefficient firms and prevent entrepreneurs with new ideas from entering into the right lines of business. This restricts workers from working in occupations to which their skills are best suited. Hence, the presence of entry barriers lowers productivity and hampers economic prosperity.
You might also like to view...
As the U.S. became increasingly industrialized in the 19th century,
a. the poor got poorer. b. the rich got poorer. c. the income of the poor grew more slowly than the income of the rich. d. the income of the poor grew more rapidly than the income of the rich.
To reduce the money supply, the Fed can ______.
a. buy bonds b. raise reserve requirements c. lower the discount rate d. decease the interest rate paid on reserves
Describe the differences between capitalism and socialism.
What will be an ideal response?
Mike is maximizing utility by working 10 hours a week and studying 10 hours a week. Mike has only 20 hours to devote to either working or studying. If Mike realizes that another hour of studying will improve his grade on an exam, thus raising the utility of another hour of study, Mike will:
A. work fewer hours, shifting his labor supply curve to the left. B. study less to raise the marginal utility of studying even more. C. work fewer hours, moving him down along his labor supply curve. D. substitute work for studying, raising his total utility.