Exam 1: The Rise, Fall and Return of the Entrepreneur

Voluntarism is the idea that human will and human efforts decide the outcome of various events, in other words the concept of human agency.

Frank Knight differentiated between uncertainty and risk, implying uncertainty - as opposed to risk (such as a game of roulette) - is incalculable and cannot be assessed rationally.

The book discusses two opposing systems of thought. One is a Darwinist, evolutionary process with the final solution unknown, while the other is a more Newtonian, mechanistic process with a predetermined end. The first is dynamic and voluntary, while the other is static and deterministic.

The term "homo economicus" - economic man - sums up the fundamental assumption national economy holds of humanity as:

Evolutionary development means that something changes gradually from one form to another.

The book is based upon four factors/components which can be considered the building blocks of entrepreneurship. These are:

Say and Cantillon launched the notion of subjective utility. This states that:

In Chapter 1, economic thinking is discussed around a model of the "zero-sum game." This implies:

An essential feature of the Austrian School is its affirmation of subjectivism (opposite: objectivism). This school believes that:

According to Jean-Baptiste Say, the entrepreneur's task is to shift the factors of production - such as labor, capital and natural resources - "out of an area of lower and into an area of higher productivity and greater yield." In other words:

Determinism implies that every event is predetermined, that events are the inevitable result of pre-ordained conditions.

Schumpeter stated that "the carrying out of new combinations" is the trademark of innovation. He detailed this by placing new developments - innovation - in five categories. Which three DO NOT belong here?

Many have shown how entrepreneurs are dependent on institutions. What do institutions signify in this context?

In his early work, Israel Kirzner identifies "alertness" as the entrepreneur's distinguishing characteristic. In other words, entrepreneurs are alert to gaps in the market, and respond by filling them.

Creative destruction is a key concept of Schumpeter's, which sets out to clarify innovation and economic growth. In other words, it means:

Certain fundamental features of the Austrian School are its thoughts on the human being. In other words:

A central linchpin in the Austrian School is that it views the economic sciences primarily as a theory of:

In this context if something is dynamic, it implies that it is developing, in constant movement.

Jean-Baptiste Say is the man behind Say's Law, which states that:

Economic flow or circulation was introduced by French physiocrats, who expressed for the first time that the economy be conceived as: