Please do not answer this question if you have already answe

Please do not answer this question if you have already answered it on this website. I’m looking for an independent second opinion on this. Use the attached graph to illustrate the effect on the share of self-employed of a program of the Government aiming to improve the social status of the entrepreneurs. Provide definitions of ‘social status of entrepreneurs’, ‘entrepreneurial opportunity’ and ‘relative supply of entrepreneurs’. If either of the graphs does not shift and stays unchanged, EXPLAIN WHY such program of the Government would not affect this line and the line would stay unchanged. Draw any changes/ line shifts to the graph and clearly explain the logic behind these changes. On the graph: Wse stands for reward of self-employment; We stands for reward of being employed; SE stands for self-emplyed; E stands for being employed. Please clearly identify increases/decreases in Wse/We rate and SE/E rate.

wse/we Entrepreneurial opportunity Relative supply of entrepreneurs SE/E

Solution

Entrepreneurial opportunity emerges when individual opportunities along with economic and social conditions are considered favorable to create a new product or service. Relative supply of entrepreneurs refers to number of people who are entrepreneurs in relation to total employed persons. Social status refers to social acceptance of the entrepreneurs.

A government program aimed at improving social status of self employed will shift the entrepreneurial opportunity curve rightwards and this shifting will increase number of self employed to employed ratio and also increase reward of self employed relative to reward of being employed.

Thus, entrepreneurial opportunity curve will shift rightwards.