Question 1

American economist Paul Romer metaphorically stated, "Economic growth springs from better recipes, not just from more cooking." What does he mean with this?

Accepted Answer

A)  that rather than working harder, one should work smarter and in new ways 
B)  that innovations demand development 
C)  that the key to growth is new knowledge/methods/innovations 
D)  that the key to growth is to work harder 
E)  that the key to growth is from more capital in work
F) that the key to growth is having more manpower working harder A,C

Question 2

Entrepreneurial capital is a component of Audretch's complementary theory of growth, promoting entrepreneurship to being an essential and decisive factor of production in the knowledge-driven global economy. Capital stands for:

Accepted Answer

A)  The capital the entrepreneur withholds as compensation for the risk he/she takes 
B)  The capital an individual can earn from his/her knowledge 
C)  The capacity of the economy to transform new knowledge into new applications 
D)  An entrepreneur's investment in his/her project C

Question 3

When the expression uncertainty is discussed in Chapter 2, a four-tiered matrix is displayed which attempts to define the entrepreneurial playing field and how it typically differs from the managerial playing field in terms of uncertainty (Sarasvathy). Which characteristics fall into the quadrant in which entrepreneurship typically plays?

Accepted Answer

A)  high uncertainty, high risk, high opportunity, minimal planning 
B)  high uncertainty, high risk, minimal opportunity, minimal planning 
C)  high uncertainty, low risk, high opportunity, minimal planning 
D)  high uncertainty, medium risk, high opportunity, minimal planning A

Question 4

The concepts of "industrial wisdom" and industry's "dominant logic" are discussed in Chapter 2. These have to do with:

Accepted Answer

A)  typical behavior of actors in the industry - unspoken norms of an industry 
B)  which industries are particularly rational and logical 
C)  the logical capacity and smartness required of one in a specific industry 
D)  the specific smart logic that industry challenges 
E)  certain training and competencies one is expected to have in a specific industry

Question 5

Researchers (and the book) discuss knowledge and its relationship to innovation, applying a mythical knowledge filter as a possible explanation of the problem behind the innovation efficiency in various countries. This alludes to the fact:

Accepted Answer

A)  that a filter filters out knowledge which is inappropriate to diffuse 
B)  that certain knowledge does not pass the market test 
C)  that knowledge in itself is a filter, impeding one from understanding what is new 
D)  that knowledge is kept from diffusing, getting stuck in the filter 
E)  that the market does not know how to appreciate knowledge
F)of the gap between knowledge's potential and its realized value
G) that various institutional set-ups impede knowledge from becoming valuable

Question 6

The book features a standardized model (M. Porter) which displays how a company's economy moves through three stages - factor-driven economy, effective-driven economy and innovation-driven economy. Each stage is shown in relation to the impact entrepreneurship has on it. What does this curve reflect?

Accepted Answer

A)  that entrepreneurship impacts each stage equally 
B)  that entrepreneurship has the most impact in the effective-driven economy 
C)  that entrepreneurship has the most impact in the factor-driven economy 
D)  that entrepreneurship has most impact in an innovation-driven economy 
E)  that entrepreneurship does not have much impact

Question 7

In Chapter 2, "institutional set-up" is mentioned. In this context, the term implies:

Accepted Answer

A)  the rules of the game - outspoken or hidden 
B)  the internal structure and positions of government institutions 
C)  the structure of the Swedish government 
D)  how one structures research institutes 
E)  laws, culture, values and attitudes which affect business ownership
F) society's framework which establishes a backdrop for business ownership

Question 8

Chapter 2 delves into the notion of two types of economies with various perks and benefits - a managerial economy and an entrepreneurial economy. Which of the following terms are typically associated with an entrepreneurial economy?

Accepted Answer

A)  Centralization 
B)  Decentralization 
C)  Dynamism 
D)  Predictability 
E)  Improvisation
F) Control
G) Networking
H)Experimentation
I)Planning
J)Large scale
K)Stability
L)Standardization
M)Variation
N)Innovation

Question 9

"The Swedish paradox" (sometimes referred to as "the European paradox") is discussed in Chapter 2. Which dilemma does this paradox address?

Accepted Answer

A)  that it is difficult and contradictive to be an entrepreneur in Sweden (Europe) 
B)  that research is not applied to create products/processes in an expected proportion 
C)  that society does not reap the expected growth/innovation from research-based investment 
D)  that Sweden (Europe) acts in a contradictive manner towards entrepreneurship 
E)  that growth and innovation have a paradoxical relationship to one another

Question 10

When the term uncertainty is discussed in Chapter 2, three different factors are listed as leading causes of uncertainty. Which three of the following are NOT included as causes?

Accepted Answer

A)  trade conditions 
B)  the market 
C)  society 
D)  technology 
E)  exchange rates
F) weather

Question 11

In the discussion on growth in Chapter 2, the following is mentioned. "The new theory of economic growth has been criticized for a certain naïveté regarding knowledge. Is it truly so that the mere existence of knowledge means that knowledge will diffuse?" What is this referring to? One, two or three of the following are correct. Which?

Accepted Answer

A)  that it is thought that "if there is knowledge, it will be used," more or less automatically 
B)  that knowledge is an essential but not sufficient ingredient in the growth equation 
C)  that there is no sequential and obvious line between knowledge, commercialization and growth

Question 12

Certain fundamental issues in the discussion on environment pertain to the question of whether the environment is ……… Select those which fit in the context of environment?

Accepted Answer

A)  given or constructed 
B)  found or created 
C)  imitative or innovative 
D)  pre-determined or shiftable 
E)  linear or non-linear
F) planned or improvised
G) stable or dynamic

Question 13

The book features a simple model from M. Porter, which displays how a country's economy can go through various stages - from a simple economy to a more sophisticated one - with increasing demands on institutional set-ups. The three stages are known as:

Accepted Answer

A)  rural economy, simple industry economy, service-based economy 
B)  factor-driven (primary resources) economy, effective-driven economy, innovation-driven economy 
C)  agricultural economy, industrial economy, information economy 
D)  earth economy, capital economy, entrepreneurial economy 
E)  pre-industrial economy, industrial economy, post-industrial economy
(Se upp så inte frågan ovan kommer samtidigt som denna nedan)

Question 14

In Chapter 2, the idea that society, particularly the economic landscape, has genuinely shifted in a number of crucial areas, and that the entrepreneurial economy is a reaction or answer to these changes is discussed. Which four of the following alternatives are some of the factors driving us towards an entrepreneurial economy?

Accepted Answer

A)  an increasingly knowledge-based economy 
B)  stock markets are increasingly volatile 
C)  globalization increases competition 
D)  sustainability issues play more of a central role 
E)  customers refuse standardized products/services
F) wage adjustments lean towards more knowledge-based ways of working
G) technological advancements reduce the need to produce economies of scale

Question 15

Certain researchers mentioned in the book argue that entrepreneurial capital or the entrepreneurial capacity in an innovation-driven global economy is now a crucial production factor. They argue that in a vital economy:

Accepted Answer

A)  global entrepreneurs capitalize on innovations 
B)  entrepreneurs require capital in order to create their global products 
C)  there is a balance between work, capital and knowledge 
D)  a mechanism is in place to secure that new knowledge is captured and transformed into products, services, etc. 
E)  one earns money partaking in this sort of activity

Question 16

Chapter 2 delves into the notion of two types of economies with various perks and benefits - a managerial economy and an entrepreneurial economy. Which of the following terms are typically associated with a managerial economy?

Accepted Answer

A)  Centralization 
B)  Decentralization 
C)  Dynamism 
D)  Predictability 
E)  Improvisation
F) Control
G) Networking
H)Experimentation
I)Planning
J)Large scale
K)Stability
L)Standardization
M)Variation

Exam 2: Environment