Technological Disruption

question 25

Multiple Choice

Technological disruption:

• A) is typically a temporary phase lasting a few months.
• B) occurs when the manufacturing plants of a company fail.
• C) mostly affects the new entrants.
• D) compels firms to adopt new business models.
• E) is a problem primarily in embryonic industries.

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Definitions:

Private Value

The value of a good or service to an individual rather than to society as a whole or to the market.

Externality

A cost or benefit arising from an activity or transaction that affects an unrelated third party who did not choose to incur that cost or benefit.

Command-And-Control Policies

Governmental regulations that directly mandate specific practices or limit activities in order to achieve policy outcomes, such as environmental standards.

Market-Based Policies

Economic strategies that utilize market principles and forces to address and solve problems, often with the goal of improving efficiency and outcomes.