Entrepreneurs often undertake the innovations that are necessary to bring inventions to the marketplace. Accordingly, what empirical pattern should be expected in an international comparison?
A) Countries with higher rates of entrepreneurship have higher rates of poverty.
B) Countries with higher rates of entrepreneurship have lower rates of immigration.
C) Countries with higher rates of entrepreneurship have lower rates of economic growth.
D) Countries that protect the property rights of entrepreneurs will have higher rates of economic growth.

Question

Quizplus · Accepted Answer

Countries that protect the property rights of entrepreneurs will be able to incentivize innovation and entrepreneurship, leading to higher rates of economic growth. This is because entrepreneurs will have stronger incentives to innovate and bring their inventions to market if they are able to profit from their efforts without fear of having their ideas stolen or copied. This relationship has been observed in numerous empirical studies of entrepreneurship and economic growth. However, there is no necessary or consistent relationship between entrepreneurship and poverty, or between entrepreneurship and immigration.

Entrepreneurs Often Undertake the Innovations That Are Necessary to Bring