According to Joseph Schumpeter,the theory of creative destruction describes a process by which
A)some new products unleash a gale of destruction that drive other new products out of the market.
B)new products unleash a gale of destruction that drives old products out of the market.
C)new products are created by the destruction of capital.
D)the creation of new products never involves the destruction of old products.

Question

Quizplus · Accepted Answer

The theory of creative destruction, according to Joseph Schumpeter, involves new products or technologies entering the market and disrupting or driving out old products. This process of destruction of old products or technologies is necessary for the creation and growth of new products and industries. Therefore, option B is the most accurate description of the theory of creative destruction.

According to Joseph Schumpeter,the Theory of Creative Destruction Describes a Process