What will happen if an economy transforms from being extractive to being inclusive?
A) The return-to-entrepreneurship schedule will shift rightward, and the opportunity cost to entrepreneurship will decrease.
B) The return-to-entrepreneurship schedule will shift leftward, and the opportunity cost to entrepreneurship will decrease.
C) The return-to-entrepreneurship schedule will shift rightward, and the opportunity cost to entrepreneurship will increase.
D) The return-to-entrepreneurship schedule will shift leftward, and the opportunity cost to entrepreneurship will increase.

Question

Quizplus · Accepted Answer

When an economy transforms from being extractive to being inclusive, it creates more opportunities and makes it easier for entrepreneurs to succeed. This means that the return-to-entrepreneurship schedule will shift rightward, as the potential rewards for entrepreneurship increase. Additionally, the opportunity cost to entrepreneurship will decrease, as there are more avenues for success and fewer barriers to entry. Overall, an inclusive economy is more conducive to entrepreneurship and innovation.

What Will Happen If an Economy Transforms from Being Extractive