The Idea That Business Failure Is a Positive Force for Progress

question 174

Multiple Choice

The idea that business failure is a positive force for progress in a market economy is often summarized by the term "creative destruction." Which of the following best states the central idea of this principle?

• A) When a business fails, the assets and resources from that business become unemployed, resulting in higher government subsidies.
• B) Business failure allows the assets and resources from that business to move into other areas where those resources are now more productive and highly valued.
• C) Only through frequent business failure will it be possible to avoid income being concentrated in a few rich entrepreneurs.
• D) The new, rival businesses that drive out old competitors tend to be less efficient and less creative than the older established businesses.

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Definitions:

Contracts Muscles

The process by which muscle fibers activate and generate force, leading to muscle shortening and movement.

Passive Mobility

The degree to which a joint can be moved by an external force without the patient exerting any effort, indicative of the joint's flexibility and health.

Physical Therapist

A healthcare professional who specializes in the physical rehabilitation of patients to improve movement, function, and manage pain.

Flexed Angle

A term describing a joint that is bent, reducing the angle between the bones that form it.