Harsh Bankruptcy Laws Become Exit Barriers,but Not Significant Barriers to Entry

question 26

True/False

Harsh bankruptcy laws become exit barriers,but not significant barriers to entry.

---

Definitions:

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world with limited resources, making rationing necessary.

Goods and Services

Goods and services constitute the output of an economy's production activities; goods are tangible products, while services are intangible benefits or functions sold to consumers.

Resource

Assets or inputs used in the production of goods and services, including natural resources, labor, and capital.

Fundamental Resource

Basic inputs used in the production of goods and services, typically including labor, capital, land, and entrepreneurship.