What will happen if the institutions in an economy transform from inclusive to extractive?
A) The return-to-entrepreneurship schedule will shift rightward and the opportunity cost to entrepreneurship will decrease.
B) The return-to-entrepreneurship schedule will shift leftward and the opportunity cost to entrepreneurship will decrease.
C) The return-to-entrepreneurship schedule will shift leftward and the opportunity cost to entrepreneurship will increase.
D) The return-to-entrepreneurship schedule will shift rightward and the opportunity cost to entrepreneurship will increase.
C
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In an open economy firms sell goods and services to:
A) households, government, and foreigners. B) just households. C) just the government. D) none of the above.
Underwriting involves
A) insuring the life or health of individuals. B) guaranteeing a price for new capital to the issuing firm. C) selling stock more cheaply than conventional stockbrokers. D) issuing stock and using the proceeds to buy bonds.