Comment on how extractive institutions affect: a) the ...

[Anajune7]

Comment on how extractive institutions affect:
  a) the return-to-entrepreneurship schedule.
  b) the opportunity cost of entrepreneurship schedule.
 
  What will be an ideal response?

Question 2

When you make a purchase at a retail store by giving your bank an instruction to transfer funds directly from your bank account to the store's bank account, you have most likely made the purchase using
 
  A) a loan. B) a debit card. C) credit. D) cash.

[Swizqar]

Answer to Question 1

a) By creating insecure property rights and limiting legal back up, extractive institutions make entrepreneurship less profitable and shift the return-to-entrepreneurship schedule leftward.
b) By creating entry barriers, extractive institutions make entry more costly and shift the opportunity cost of entrepreneurship schedule upward.

Answer to Question 2

B

[Anajune7]

Gracias!

[hollysheppard095]

Thanks for the timely response, appreciate it