How do entry barriers hamper economic prosperity? What will be ...

[meagbuch]

How do entry barriers hamper economic prosperity?
 
  What will be an ideal response?

Question 2

In the above figure, the equilibrium level of real GDP per year is
 
  A) 1.0 trillion. B) 3.0 trillion. C) 2.0 trillion. D) 4.0 trillion.

[ndhahbi]

Answer to Question 1

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.

Answer to Question 2

D