How can innovation foster creative destruction? What are the objections to that idea?
What will be an ideal response?
Innovation may foster creative destruction, where the creation of new products and production methods simultaneously destroys the monopoly positions of firms protecting existing products and methods.
There is another view that suggests that creative destruction is not inevitable or automatic. A dominant firm may be able to block the entry of new firms and restrict competition. While innovation improves economic efficiency, in some cases it can increase monopoly power that takes a long time to erode.
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According to the above table, the value of M1 is
A) $1,205 billion. B) $1,213 billion. C) $1,888 billion. D) $1,629 billion.
List and explain factors that influence consumption expenditure
What will be an ideal response?
The division of labor helps to explain why: a. consumers need not have a deep knowledge of the goods they consume
b. consumers can only consume those goods of which they have an in-depth knowledge. c. domestic industries need protection from foreign competition. d. government intervention is required for the market to work efficiently.
Answer the following statement(s) true (T) or false (F)
1. Governments should avoid investing in education because it has little impact on productivity or economic growth. 2. Rapid population growth can negatively impact per capita output. 3. The law of diminishing marginal returns means that population growth can result in workers with insufficient capital. 4. A larger population means a larger labor force, greater production, and higher standards of living for the average worker. 5. With a higher population growth rate comes greater capital stock per worker.