A Prospective Entrepreneur Is Evaluating the Suitability of His Own

question 50

Multiple Choice

A prospective entrepreneur is evaluating the suitability of his own characteristics for an entrepreneurial career.He realizes that he should be prepared to assume:

• A)moderate risks.
• B)no risks--that is,he should plan to operate conservatively.
• C)risks similar to those a gambler assumes in Las Vegas.
• D)psychological risks but not financial risks.

Understand the characteristics and consequences of operating within black markets, including the role of violence and the quality of products.

Comprehend the principles of supply and demand as they apply in both legal and black markets.

Analyze the effects of excise taxes on goods with different elasticity of demand and the concept of deadweight loss.

Recognize how secure private property rights and contract enforcement enhance market efficiency.

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Definitions:

Defense Mechanism

Psychological strategies unconsciously used to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Repression

A defense mechanism where distressing memories, thoughts, or impulses are excluded from conscious awareness.

Asbestos Plant

An industrial facility involved in processing asbestos, a hazardous material known for causing respiratory diseases, including mesothelioma, if inhaled.

Cancer Risk

The probability or likelihood of developing cancer during one’s lifetime, influenced by genetic, environmental, and lifestyle factors.