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Questions and Answers
What concept describes the process by which capitalism innovates new industries while destroying old ones?
What concept describes the process by which capitalism innovates new industries while destroying old ones?
- Capitalist Instability
- Economic Evolution
- Creative Destruction (correct)
- Market Disruption
Which of the following statements best reflects the idea of creative destruction?
Which of the following statements best reflects the idea of creative destruction?
- New businesses are created while old ones remain unchanged.
- Innovation disrupts and eliminates previous economic structures. (correct)
- Traditional practices are preserved in the face of modernization.
- Economic growth occurs without impacting existing industries.
In the context of Schumpeter's theory, which of the following best describes the relationship between new and old industries?
In the context of Schumpeter's theory, which of the following best describes the relationship between new and old industries?
- Old industries are reformed rather than destroyed.
- Old industries maintain their relevance in times of innovation.
- New industries replace old ones through processes of innovation. (correct)
- New industries gradually integrate with old industries.
Creative destruction primarily occurs due to which factor in capitalism?
Creative destruction primarily occurs due to which factor in capitalism?
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What is a potential outcome of the process of creative destruction in a capitalist economy?
What is a potential outcome of the process of creative destruction in a capitalist economy?
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