Which of the Following Government Policies Would Be Least Likely

question 22

Multiple Choice

Which of the following government policies would be least likely to encourage entrepreneurship?

• A) Passage of laws that enable businesspeople to write enforceable contracts
• B) Establishment of a currency that is tradable in world markets
• C) Establishment of strict regulations specifying exactly how products should be made to ensure safety and affordability
• D) Passage of laws that eliminate corruption in government and business

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Definitions:

Bushels

A unit of volume that is used in the United States for measuring agricultural produce such as grain, fruits, and vegetables.

Profit-maximizing

The process or strategy of adjusting production and pricing to achieve the highest possible profit in a business.

Profit

The financial gain obtained when the revenue earned from business activities exceeds the expenses, costs, and taxes involved in sustaining the business.

Demand Curve

A graph illustrating how much of a given product a household would be willing to buy at different prices.