The Dictator of a Certain Country Requires That Companies Planning

question 225

Multiple Choice

The dictator of a certain country requires that companies planning to open or expand must pay a large fee to file an application one year prior to building new factories or expanding existing ones. Other things the same, in the long run this requirement would

• A)reduce real GDP per person and productivity.
• B)reduce real GDP per person but not productivity.
• C)reduce productivity but not real GDP per person.
• D)None of the above is correct.

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Definitions:

Entrepreneurship

Entrepreneurship is the act of creating, managing, and running a new business venture to make a profit, often at the risk of losing the initial investment.

Opportunities

Chances or situations that can be utilized to achieve or further one's goals.

Resources

Assets, materials, and other items of value that can be used to produce goods and services or to achieve goals.

Small Business

An independent business with fewer employees and less annual revenue than a corporation or larger company, playing a significant role in most economies.