If a country's economy is to sustain long-run economic growth, the business environment must be conducive to innovations and entrepreneurial activity.

Question

Quizplus · Accepted Answer

Innovations in production and business processes lead to an increase in the productivity of labor and capital, which further boosts economic growth rates. Entrepreneurs first commercialize innovative new products and processes, and entrepreneurial activity provides much of the dynamism in an economy.

If a Country's Economy Is to Sustain Long-Run Economic Growth