The Main Argument of Joseph Schumpeter's Idea of "Creative Destruction

question 106

Multiple Choice

The main argument of Joseph Schumpeter's idea of "creative destruction" is that

• A)monopolies create profits for themselves at the expense of the destruction of consumer surplus.
• B)the existence of monopolies leads to destruction of the environment.
• C)perfectly competitive industries are characterized by more productive innovation and productivity growth than monopolistic industries,which Schumpeter regarded as destructive.
• D)monopoly profits lead to innovation in an effort to sustain those profits.
• E)short- run profits created by the existence of monopolies will lead to antitrust legislation,which will force the fragmentation of monopolies into competitive industries.

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Definitions:

Political Turmoil

A state of great confusion, uncertainty, or disorder in the political realm, often involving conflicts or instability.

High-Tech Industries

Sectors involving the development and production of technology products or services, characterized by high levels of research and development and rapid innovation.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, often leading to higher prices for consumers.

Transparency International

A non-governmental organization that aims to combat global corruption and promote transparency, accountability, and integrity in all sectors.