Macroeconomics 9th Edition by David Colander

Exercise 35

One of the specific problems socialist economies had was keeping up with capitalist countries technologically.Difficult)
a. Can you think of any reason inherent in acentrally planned economy that would make innovation difficult
b. Can you think of any reason inherent in a capitalist country that would foster innovation
c. Joseph Scbumperer, a famous Harvard economist of the 1930s, predicted that as firms in capitalist societies grew in size, they would innovate less.an you suggest what his argument might have been
d. Schumperer's prediction did not come true.odem capitalist economies have had enormous innovations.an you provide explanations as to why