Which of the Following Statements Is Consistent with the Views

question 72

Multiple Choice

Which of the following statements is consistent with the views of Joseph Schumpeter?

• A)Research and development by competitive firms is responsible for most technological changes.
• B)An economy benefits from firms having market power because these firms are more likely to be able to commit funds for research and development.
• C)Enforcement of antitrust laws is necessary to promote competition among firms.
• D)A lack of competition discourages firms from developing new technologies.

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Definitions:

Money Supply

The full amount of monetary assets in an economy at a particular time, covering cash, coins, and the amounts in checking and savings accounts.

Value of Money

The purchasing power of money, which can vary over time due to factors like inflation or economic conditions.

Vertical Axis

In graphing, the y-axis upon which variables or values are plotted, typically representing dependent measurements in a chart or graph.

Real Salary

The purchasing power of an individual's income, taking into account the effect of inflation on spending power.