If the institutions in an economy limit the legal backup that protects the interests of entrepreneurs,the returns-to-entrepreneurship curve in the economy will ________.
A) shift leftward
B) shift rightward
C) become horizontal
D) become vertical

Question

Quizplus · Accepted Answer

If legal protection for entrepreneurs is limited, they will face more risks and uncertainty. As a result, the returns-to-entrepreneurship will decrease and the curve will shift leftward, indicating lower returns for entrepreneurship.

If the Institutions in an Economy Limit the Legal Backup