Creative destruction is
A)the process by which large firms buy up small firms.
B)the process by which new firms and new products replace existing dominant firms and products.
C)a term coined many years ago by Adam Smith.
D)applicable to planned economies but not to market economies.

Question

Quizplus · Accepted Answer

Creative destruction refers to the process where innovation and new technologies lead to the demise of older companies and products, making way for new ones. This concept is closely associated with the economist Joseph Schumpeter, not Adam Smith, and is applicable to market economies where competition and innovation drive economic development.

Creative Destruction Is