Managerial Economics 2nd Edition by William Boyes

تمرين 14

Every country in the world has entrepreneurs-people who are creative and willing to take risks. But not all economies encourage their entrepreneurs to succeed in developing new products, ideas, or services and getting them to consumers. An economic system must provide incentives that encourage entrepreneurs to risk trying something new. The dashed line in the accompanying figure shows the relationship between economic freedom and entrepreneurial activity. Why would entrepreneurial activity pick up as economic freedom increases?