The Process by Which New Products and Methods of Production

question 221

Multiple Choice

The process by which new products and methods of production are continuously replacing old ones is known as

• A) the invisible hand principle.
• B) the production possibilities frontier.
• C) creative destruction.
• D) the fallacy of composition.

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Definitions:

Scatter Diagram

A graph that shows points that correspond to actual observations of the x- and y-variables; a curve is usually fitted to the scatter of points to indicate the trend in the data.

Dependent Variables

Variables in an experiment or model that are expected to change in response to changes in the independent variable(s).

Nonlinear

Describes a process or relationship where a change in input does not lead to a proportional change in output, indicating a complex, non-proportional relationship between variables.

Negative Relation

A relationship between two variables where an increase in one variable is associated with a decrease in the other variable.