Which of the Following Is True of Entrepreneurship

question 178

Multiple Choice

Which of the following is true of entrepreneurship?

• A) Entrepreneurial discovery is an important source of economic growth and higher living standards.
• B) The role of the entrepreneur is not very important and that is why it is generally not included in economic models.
• C) The role of entrepreneurial discovery could be easily integrated into economic models, but nonetheless economists choose not to do so.
• D) Economic models are able to capture fully the important role of the entrepreneur in the market process.

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Definitions:

Price

The amount of money required to purchase a good or service; the value that must be exchanged to acquire a specific product.

Short-run Industry Supply

The total quantity of goods that producers in an industry are willing and able to sell at different prices in a short period, without changing production capacity.

Perfectly Competitive Market

A theoretical market structure characterized by infinite buyers and sellers, homogenous products, and no barriers to entry or exit.

Long-run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments until they reach a point of no economic profit or loss.