INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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people’s attitudes have changed.
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products have become very technical.
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costs of production have continued to increase.
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competition in the marketplace has increased.
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Detailed explanation-1: -The regulatory functions of the Government include: (i) Restraints on private activities. (ii) Control of monopoly and big business. (iii) Development of public enterprises as an alternative to private enterprises to ensure competitive dualism. (iv) Maintenance of a proper socio-economic infrastructure.
Detailed explanation-2: -Governments establish many policies that guide businesses. The government can make changes in fiscal policy which leads to changes in taxes, trade, subsidies, regulations, interest rates, licencing and more. Businesses should be flexible enough to respond to changing rules and policies.
Detailed explanation-3: -There is an economic role for government to play in a market economy whenever the benefits of a government policy outweigh its costs. Governments often provide for national defense, address environmental concerns, define and protect property rights, and attempt to make markets more competitive.
Detailed explanation-4: -Therefore, the government must reduce economic instability and stabilise the economy more and more. Governments use tax policies, fee policies, spending policies, fiscal deficits, public borrowing, etc. to control economic fluctuations in the economy.