Creative destruction means that

Question

Quizplus · Accepted Answer

Creative destruction refers to the process of innovative firms replacing older, less efficient firms in the economy, leading to economic growth. This process is driven by firms developing new products that outcompete and ultimately replace older products. Thus, option A is the correct answer. Option B is incorrect as it suggests that rapid depreciation of capital is necessary for sustained economic growth. Option C is also incorrect as it focuses on government subsidies rather than the innovation-driven process of creative destruction. Option D is incorrect as it suggests that only incremental changes should be pursued in research and development.

Creative Destruction Means That