What are the two ways in which extractive institutions affect the number of entrepreneurs in a nation?
What will be an ideal response?
The presence of extractive institutions reduces the number of entrepreneurs in a nation in two ways:
a) They create insecure property rights and fail to provide proper legal back up to businesses, and reduce profitability.
b) They create entry barriers discouraging entrepreneurs from starting companies that would compete and innovate in the market.
Economics
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The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. How much tax revenue does the government raise from this tax?
A) $2,000 B) $3,000 C) $4,000 D) $6,000
Economics
How long does it take prices of securities to adjust so as to eliminate arbitrage profits?
A) seconds B) hours C) days D) months
Economics