Which of the following statements is true about innovations and entrepreneurship?
A)A command economy creates greater incentives for innovation and entrepreneurship than a market economy.
B)If a country's economy is to sustain long-run economic growth,the business environment must restrict entrepreneurial activity.
C)A high level of entrepreneurial activity leads to a low level of innovation.
D)Innovations in production and business processes lead to an increase in the productivity of labor and capital.
E)Strong legal protection of property rights creates an unfavorable environment for innovation and entrepreneurship.

Question

Quizplus · Accepted Answer

Innovations in production and business processes can lead to an increase in the productivity of labor and capital, which can drive economic growth and support entrepreneurship. This is because new innovations often make it easier, cheaper, or more efficient to produce goods and services. Therefore, option D is the only true statement about innovation and entrepreneurship. The other options are incorrect because they either suggest that innovation and entrepreneurship are not important for economic growth or imply that policies that support these activities are harmful.

Which of the Following Statements Is True About Innovations and Entrepreneurship