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

question 62

Multiple Choice

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

• A)the existence of monopolies leads to destruction of the environment.
• B)short-run profits created by the existence of monopolies will lead to antitrust legislation,which will force the fragmentation of monopolies into competitive industries.
• 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)monopolies create profits for themselves at the expense of the destruction of consumer surplus.

---

Definitions:

Feelings of Equity

The emotional perceptions of fairness and justice within interpersonal and organizational relationships, often influencing motivation and satisfaction.

Inputs

In the context of organizations, refers to the resources, such as human labor, capital, and materials, that are required to produce goods or services.

Outcomes

The results or consequences of an action or a series of actions, often measured in terms of success, failure, or progress.

Effective Feedback

Constructive information given to individuals to help them recognize and build on their strengths and identify areas for improvement.