Course Description

Module 6: What Institutional Factors Encourage Entrepreneurship?

People respond to incentives in predictable ways. The “rules of the game,” or what economists call institutions, influence the choices individuals make. Basic institutions like laws and cultural customs establish the foundational incentive structure of an economic system. Entrepreneurs are vital to economic growth and higher living standards. Societies with an institutional environment that discourages entrepreneurship tend to see few individuals involved in wealth creating activities. This lesson introduces students to the concept of institutions as we evaluate the impact specific institutions tend to have on encouraging or discouraging entrepreneurship.

FEE Courses

Course curriculum

  • 1

    Module Six: What Institutional Factors Encourage Entrepreneurship?

    • Overview

    • Additional Resources

    • Concepts and Terms

    • Objectives

  • 2

    Lesson One: The Marvel of the Market

    • Introduction

    • I, Pencil: The Movie

    • Watch Video

    • Think and Reflect

    • I, Pencil: My Family Tree by Leonard Read

    • Read Essay

    • Lesson Quiz

    • Knowledge Recap

    • Bonus Material

  • 3

    Lesson Two: When Order Emerges

    • Introduction

    • Can Order Be Unplanned? by Learn Liberty

    • Watch Video

    • Think and Reflect

    • Spontaneous Order

    • Watch Video

    • Cavemen, Money, and Spontaneous Orders by Sandy Ikeda

    • Read Article

    • Think and Reflect

    • The Beauty of Emergent Order by Voice and Exit

    • Watch Video

    • Think and Reflect

    • Lesson Quiz

    • Knowledge Recap

    • Bonus Material

  • 4

    Lesson Three: The Rules of the Game

    • Introduction

    • What Caused the Economic Boom of Wealth?

    • Watch video

    • Think and Reflect

    • Liberty and Dignity Explain the Modern World by Deidre McCloskey

    • Read Article

    • Think and Reflect

    • Activity: Tragedy of the Lemonade

    • Lesson Quiz

    • Knowledge Recap

    • Bonus Material

  • 5

    Lesson Four: Incentives Matter

    • Introduction

    • Incentives Matter by Learn Liberty

    • Watch Video

    • Think and Reflect

    • The Power of Incentives by Dwight Lee

    • Read Article

    • Think and Reflect

    • Candy Cartel

    • Lesson Quiz

    • Knowledge Recap

    • Bonus Material

  • 6

    Lesson Five: Entrepreneurship Stifled

    • Introduction

    • Watch Video: Why Can't Chuck Get His Business off the Ground?

    • Think and Reflect

    • Does Occupational Licensing Protect Its Consumers? by John Hood

    • Read Article

    • Think and Reflect

    • Should You Need the Government's Permission to Work?

    • Watch Video

    • Think and Reflect

    • Burdens of Licensure

    • Lesson Quiz

    • Knowledge Recap

    • Bonus Material

    • Module 6 Badge