If the Production of a Product Results in Significant External

question 235

Multiple Choice

If the production of a product results in significant external costs, an appropriate government policy might be to

• A) subsidize the production of the good.
• B) tax producers and thus shift the supply curve to the left.
• C) tax consumers' incomes and thus shift the demand curve to the left.
• D) subsidize consumers since the good is being under-consumed.

Identify the characteristics and examples of start-up firms.

Understand the concept and examples of entrepreneurship.

Recognize innovation within an existing business firm.

Understand the concept and sources of venture capital.

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Definitions:

Labor-Force Participation Rate

The percentage of the working-age population that is in the labor force, including both employed and unemployed individuals.

Employed

The state of having paid work or being engaged in an activity or enterprise as a means of earning an income.

Labor-Force Participation Rate

The proportion of the adult population that is either employed or actively looking for employment.

Marginally Attached Workers

Individuals not currently in the labor force who have looked for work within the last year but not in the last four weeks, often due to temporary barriers.