Author Question: Comment on how extractive institutions affect: a) the return-to-entrepreneurship schedule. b) the ... (Read 56 times)

Anajune7 · **on:** Jun 30, 2018

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 · **Reply #1 on:** Jun 30, 2018

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