Which of the following statements is true of the number of entrepreneurs in an economy?
A) The number of entrepreneurs is likely to be higher in a command economy than in a market economy.
B) The number of entrepreneurs is likely to be the same in a command economy and a market economy.
C) The number of entrepreneurs is likely to be higher in an economy with inclusive institutions than in an economy with extractive institutions.
D) The number of entrepreneurs is likely to be the same in an economy with inclusive institutions and an economy with extractive institutions.

Question

Quizplus · Accepted Answer

Inclusive institutions provide a level playing field for all individuals, including entrepreneurs, to participate in the economy without fear of arbitrary treatment, corruption, or exploitation. This creates an environment that encourages entrepreneurship, resulting in a higher number of entrepreneurs. On the other hand, extractive institutions tend to favor a small group of individuals or firms, making it difficult for others to participate in the economy, leading to a lower number of entrepreneurs. Therefore, option C is correct.

Which of the Following Statements Is True of the Number