Technological improvements are more likely to occur if
A)the economy is centrally planned.
B)entrepreneurs are compensated with higher profits for taking risks.
C)economic decisions are made by politicians rather than entrepreneurs.
D)companies face little competition in their markets.
E)governments directly control research and development.

Question

Quizplus · Accepted Answer

Entrepreneurs being compensated with higher profits for taking risks encourages them to invest in new technologies and innovations. This creates a competitive market, which pushes companies to keep improving their products or services to maintain their profits. Therefore, technological improvements are more likely to occur if entrepreneurs are incentivized to take risks and invest in research and development.

Technological Improvements Are More Likely to Occur If