Asked by Mohammed Yasser on Jun 29, 2024
Verified
Creative destruction is most often associated with
A) international trade.
B) technological advance.
C) government spending.
D) private consumption.
Creative Destruction
A process in economics where innovation leads to the demise of existing structures and businesses, paving the way for new ones.
Technological Advance
The introduction of new technologies or improvements in existing technologies that increase productivity and efficiency.
International Trade
The exchange of goods and services between countries, allowing for access to foreign markets and diverse products.
- Expound on the idea and impacts of creative destruction in the context of market fluctuations.
Verified Answer
RR
Royal RookieJul 02, 2024
Final Answer :
B
Explanation :
Creative destruction is a concept in economics primarily associated with technological advance, where old industries or ways of doing things are destroyed and replaced by new, more efficient ones. This term is closely linked to the work of economist Joseph Schumpeter, who highlighted how technological innovation drives economic growth through the process of rendering older technologies or products obsolete.
Learning Objectives
- Expound on the idea and impacts of creative destruction in the context of market fluctuations.