The replacement of older products by newer improved ones is called

What will be an ideal response?


creative destruction.

Economics

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When a party to a transaction lacks relevant information:

A. other parties will voluntarily share this information truthfully. B. they will not make the deal without complete information. C. they sometimes seek out information in ways that are not obvious. D. they always make the deal blindly.

Economics

For a worker to be potentially available, he or she must

A) know about the jobs available at a particular firm. B) be in the relevant geographic market and be willing to work for minimum wage. C) have most of the skills required by the firm only. D) have the skills required by the firm and be in the relevant geographic market.

Economics

It is efficient to reduce pollution up until the marginal benefit from reducing the pollution equals the marginal cost of abatement.

Answer the following statement true (T) or false (F)

Economics

Inelastic demand implies

A. that a one percent increase in price results in a larger than one percent decrease in quantity demanded. B. that a one percent cut in price results in a larger than one percent increase in quantity demanded. C. that a one percent increase in price results in a smaller than one percent decrease in quantity demanded. D. that a one percent decrease or increase in price induces no change in total revenue.

Economics