Which Is Not an Example of Creative Destruction

question 58

Multiple Choice

Which is not an example of creative destruction?

• A) A large manufacturing plant closes, and unemployed workers leave town.
• B) Americans retire in Mexico because the cost of living is cheaper.
• C) Call centers are moved from the United States to India and the Philippines.
• D) Medical records go online, eliminating the need for paper files and people to track and organize them.
• E) All of these are examples of creative destruction.

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Definitions:

Debt Instrument

A debt instrument is a document or contract representing a loan made by an investor to a borrower, specifying terms of repayment and interest.

Equity Investment

Funds invested in a company by purchasing shares of its stock, representing ownership interest.

Derivative

A derivative is a financial security with a value that is reliant upon or derived from, an underlying asset or group of assets—such as stocks, bonds, commodities, currencies, interest rates, or market indexes.

Equity Contracts

Agreements that represent ownership interest in a corporation, potentially including options, warrants, and other financial instruments.