Question 1

In Chapter 2, "institutional set-up" is mentioned. In this context, the term implies:

Accepted Answer

The term "institutional set-up" in this context refers to the broader framework that includes the rules (spoken or unspoken), cultural values, and societal structures that influence business ownership.

Question 2

The concepts of "industrial wisdom" and industry's "dominant logic" are discussed in Chapter 2. These have to do with:

Accepted Answer

"Industrial wisdom" and industry's "dominant logic" refer to the unspoken norms and typical behavior of actors within a particular industry, which may not necessarily be logical or rational. They are not about the specific skills or competencies required for success in that industry.

Question 3

American economist Paul Romer metaphorically stated, "Economic growth springs from better recipes, not just from more cooking." What does he mean with this?

Accepted Answer

Romer's metaphor suggests that economic growth is driven by innovation and smarter ways of doing things (new recipes) rather than simply increasing inputs such as labor or capital (more cooking).

Question 4

"The Swedish paradox" (sometimes referred to as "the European paradox") is discussed in Chapter 2. Which dilemma does this paradox address?

Accepted Answer

The Swedish (or European) paradox refers to the situation where high levels of research and development do not translate into expected levels of innovation and economic growth, highlighting issues in applying research to create products and processes and in reaping growth from research investments.

Question 5

Researchers (and the book) discuss knowledge and its relationship to innovation, applying a mythical knowledge filter as a possible explanation of the problem behind the innovation efficiency in various countries. This alludes to the fact:

Accepted Answer

The answer of Researchers (and the book) discuss knowledge and...

Question 6

Entrepreneurial capital is a component of Audretch's complementary theory of growth, promoting entrepreneurship to being an essential and decisive factor of production in the knowledge-driven global economy. Capital stands for:

Accepted Answer

Entrepreneurial capital refers to the capacity of the economy to transform new knowledge into new applications. It is not solely related to the capital an individual earns or invests in their project, as suggested in options A and D. Option B is not a comprehensive definition of entrepreneurial capital as it overlooks the collective effort required to bring new knowledge to fruition. So, option C is the best choice as it highlights the role of the wider economy in supporting entrepreneurial pursuits.

Question 7

In the discussion on growth in Chapter 2, the following is mentioned. "The new theory of economic growth has been criticized for a certain naïveté regarding knowledge. Is it truly so that the mere existence of knowledge means that knowledge will diffuse?" What is this referring to? One, two or three of the following are correct. Which?

Accepted Answer

The answer of In the discussion on growth in Chapter...

Question 8

Certain researchers mentioned in the book argue that entrepreneurial capital or the entrepreneurial capacity in an innovation-driven global economy is now a crucial production factor. They argue that in a vital economy:

Accepted Answer

The researchers argue that in an innovation-driven global economy, entrepreneurial capacity or capital is a crucial production factor. They further argue that a mechanism must be in place to convert new knowledge into products, services, or innovations. Therefore, option D is the best choice as it directly refers to the creation of new knowledge and transforming it into a product or service.

Question 9

Chapter 2 delves into the notion of two types of economies with various perks and benefits - a managerial economy and an entrepreneurial economy. Which of the following terms are typically associated with a managerial economy?

Accepted Answer

Managerial economies are characterized by centralization, predictability, control, planning, large scale operations, stability, and standardization, reflecting their focus on efficiency, consistency, and minimizing risks.

Question 10

Chapter 2 delves into the notion of two types of economies with various perks and benefits - a managerial economy and an entrepreneurial economy. Which of the following terms are typically associated with an entrepreneurial economy?

Accepted Answer

An entrepreneurial economy is characterized by decentralization, dynamism, improvisation, networking, experimentation, variation, and innovation, which foster creativity and adaptability.

Question 11

In Chapter 2, the idea that society, particularly the economic landscape, has genuinely shifted in a number of crucial areas, and that the entrepreneurial economy is a reaction or answer to these changes is discussed. Which four of the following alternatives are some of the factors driving us towards an entrepreneurial economy?

Accepted Answer

The answer of In Chapter 2, the idea that society,...

Question 12

The book features a simple model from M. Porter, which displays how a country's economy can go through various stages - from a simple economy to a more sophisticated one - with increasing demands on institutional set-ups. The three stages are known as:

Accepted Answer

M. Porter's model consists of three stages - factor-driven economy, efficiency-driven economy, and innovation-driven economy. These stages reflect the increasing demands on institutional set-ups as a country's economy moves from a simple to a more sophisticated one. The other options (A, C, D, E) are not accurate descriptions of Porter's model.

Question 13

The book features a standardized model (M. Porter) which displays how a company's economy moves through three stages - factor-driven economy, effective-driven economy and innovation-driven economy. Each stage is shown in relation to the impact entrepreneurship has on it. What does this curve reflect?

Accepted Answer

The curve reflects that entrepreneurship has most impact in an innovation-driven economy, as this stage is characterized by the creation of new products and services, which is a key aspect of entrepreneurship. The factor-driven economy is characterized by low wages and low-cost production, where entrepreneurship may have some impact but not as much as in the later stages. The effective-driven economy is focused on efficiency and optimization, where entrepreneurship may play a role in improving processes, but again not as much as in the innovation-driven economy. Therefore, choice D is the most accurate.

Question 14

When the term uncertainty is discussed in Chapter 2, three different factors are listed as leading causes of uncertainty. Which three of the following are NOT included as causes?

Accepted Answer

The answer of When the term uncertainty is discussed in...

Question 15

When the expression uncertainty is discussed in Chapter 2, a four-tiered matrix is displayed which attempts to define the entrepreneurial playing field and how it typically differs from the managerial playing field in terms of uncertainty (Sarasvathy). Which characteristics fall into the quadrant in which entrepreneurship typically plays?

Accepted Answer

Entrepreneurship often operates in environments characterized by high uncertainty, high risk, and high opportunity, where minimal planning is possible due to the unpredictable nature of the market and innovation processes. This contrasts with more traditional managerial settings, where risks and outcomes can be more readily anticipated and planned for.

Question 16

Certain fundamental issues in the discussion on environment pertain to the question of whether the environment is ……… Select those which fit in the context of environment?

Accepted Answer

The answer of Certain fundamental issues in the discussion on...

Quiz 2: Environment