What Is True About Small Businesses and Entrepreneurship

question 21

Multiple Choice

What is true about small businesses and entrepreneurship?

• A) All small businesses behave entrepreneurially
• B) All entrepreneurial firms are small businesses
• C) All entrepreneurial firms are large corporations
• D) Some small firms continue to behave entrepreneurially over time

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Definitions:

Short-Run Phillips Curve

An economic model suggesting an inverse relationship between the rate of inflation and the unemployment rate in the short term.

Sacrifice Ratio

The measure of the decline in a country's economic output as a result of efforts to reduce inflation.

High Inflation

A condition characterized by a significant and sustained rise in the general level of prices for goods and services, eroding purchasing power.

Nominal Wages

The wages paid to employees measured in current money and not adjusted for inflation, reflecting the face value of earnings.