Entrepreneurship and Economic Growth

Why should countries invest in developing capital goods?

• they shouldn't, it is too expensive

• because capital goods cannot be sold to other countries

• when countries invest in capital goods, they are providing better facilities, resources, and/or materials for the people who perform the labor, which creates a more productive workforce leading to greater economic growth (higher GDP).

• because capital goods are less expensive than private goods

What do entrepreneurs do?

• represent business at the capital

• make all the laws in regards to business

• start their own business, invent something new, or change the way something was previously done so that it works better

• work in politics with regards to foreign business

Why should countries invest in developing human capital?

• because the more people you have working in one area like a capital the more productive it will be

• it leads to a lower GDP

• it leads to lower literacy rate

• investment in the education and skills training of people creates a smarter and more productive workforce, which relates to a higher GDP.

What are capital goods?

• goods that are produced in the capital

• the factories, machinery, and technology used to produce goods and services

• goods that are produced without natural resources

• goods that are produced by the government

What are the Factors of Production?

• land, money, manufacturing, and workers

• labor, capital, supply, and demand

• land, labor, capital, and entrepreneurship

• entrepreneurship, innovation, natural resources, and money

Entrepreneurs are always considered part of entrepreneurship and that's why you can say they're included as a part of the factors of production.

• True

• False

There are three questions that we must ask in order to deal with scarcity. They are the reason that economics exist. What are these three questions?

• What goods and services must be produced?

• Why should we produce these goods and services

• How will these goods and services be produced?

• Who will consume the goods and services?

How does entrepreneurship contribute to economic growth?

• By creating jobs and reducing unemployment

• By increasing government control over the economy

• By decreasing competition in the market

• By limiting innovation and creativity

Which of the following is a characteristic of a successful entrepreneur?

• Risk aversion

• Inability to adapt to change

• Innovative thinking

• Dependence on government support

What role does innovation play in entrepreneurship?

• It hinders economic growth

• It leads to the creation of new products and services

• It reduces market competition

• It increases reliance on traditional methods