Quiz 3

Focuses on resource allocation differing from other discipline focuses on diverse goals

Who is the Father of Economics?

He described an entrepreneur in terms of the production and distribution of goods in a competition market.

True or False. In the neo classical theory equilibrium of demand and supply determines prices and economic growth.

He described an entrepreneur as a speculator who conducts all exchanges and bear risk as a result of buying a certain price and further selling them

True or False. Schumpeter's theory, emphasizing creative destruction, is not applicable to development economics, especially in contexts where the marginal propensity to save and productivity of labor are low, as it overlooks structural challenges

True or False. Individuals with the greatest foresight are most likely to make the best decisions in a market economy, and they are often categorized as "consumers," despite their role in shaping demand and influencing economic outcomes.

True or False. Entrepreneurs possess perfect knowledge of purely competitive markets, and this idealized assumption fully reflects the complexities of real-world entrepreneurial decision-making.

True or False. According to Frank Knight the typical characteristics of entrepreneur are intelligence, alertness, energy and determination

True or False. The concept of diminishing marginal utility is central to entrepreneurial engagement, as it helps explain why entrepreneurs seek new opportunities to create value when the utility from existing ventures decreases.