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enterprises Entrepreneurship and Management Factors influencing entrepreneurship ? Taxation ? Regulation ? Social Customs Entrepreneurship and Management Management: ? Influence productivity by implementing more efficient methods of production. F. The Political and Legal Environment Establish: ? Welldefined property rights ? Maintain political stability ? Promote free and open exchange of ideas Ⅲ .The Costs of Economic Growth The opportunity cost of increasing the production of capital goods is: ? Less consumer goods. ? Reduced leisure time, worker’s safety, and health. ? The cost of R amp。 D. ? The cost of education (human capital). ? What Do You Think? – Do the benefits of economic growth exceed the costs? Ⅳ .Promoting Economic Growth ? Policies to increase human capital ? Policies that promote saving and investment ? Policies that support research and development ? The legal and political framework Why do almost all countries provide free public education? Policies that promote saving and investment ? Tax code provisions ? Public investment and creation of infrastructure Policies that support research and development Improve the legal and political framework The Poorest Countries: A Special Case? ? Corrupt legal systems create uncertainty about property rights ? Taxation and regulation discourages entrepreneurship ? Markets are not allowed to function ? Lack of political stability discourages foreign investment Are There Limits to Growth? ? Limits to growth, assumes economic growth will take the form of what we have now. ? Limits to growth, overlooks that growth expands society’s capacity to safeguard the environment. ? Limits to growth, underestimates the power of markets to deal with scarcity. Environmental limits Are There Limits to Growth? ? What Do You Think? – How can we address global environmental issues? End of Chapter