If institutions in an economy change from being inclusive to extractive,the return-to-entrepreneurship schedule in the economy will ________.
A) become vertical
B) become horizontal
C) shift leftward
D) shift rightward

Question

Quizplus · Accepted Answer

When institutions in an economy change from being inclusive to extractive, they tend to become less supportive of entrepreneurship. This can result in a leftward shift of the return-to-entrepreneurship schedule, indicating that the expected returns from entrepreneurship have decreased. As a result, fewer people may be willing to pursue entrepreneurial activities, leading to a decline in economic growth and development.

If Institutions in an Economy Change from Being Inclusive to Extractive,the