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What Will Happen If the Institutions in an Economy Transform

Question 25

Multiple Choice

What will happen if the institutions in an economy transform from inclusive to extractive?


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.

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