In a country that has an unstable government or judiciary,what impact would you expect to see on the amount of entrepreneurial activity?
A) There would be less entrepreneurial activity, because there would be an unreliable infrastructure for protecting property rights.
B) There would be more entrepreneurial activity, because in general there would be less taxation of commercial and research activities.
C) There would be less entrepreneurial activity, because in an unstable economy there are fewer entrepreneurs.
D) There would be more entrepreneurial activity, because there would be fewer governmental restrictions.
Correct Answer:
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