The Indian government is known for creating obstacles to foreign investment with tariffs, investment caps and tons of red tape. What effect does "red tape" have on growth?
A)It discourages entrepreneurship.
B)It discourages leisure.
C)It encourages learning by doing.
D)It encourages specialization.

Question

Quizplus · Accepted Answer

Red tape, which refers to excessive regulation or rigid conformity to formal rules, is often seen as a barrier to entrepreneurship because it increases the complexity and cost of starting and operating a business. This can discourage individuals from pursuing entrepreneurial ventures.

The Indian Government Is Known for Creating Obstacles to Foreign