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.
E)new products are bought out by existing large firms in their efforts to "destroy" competition.

Question

Quizplus · Accepted Answer

According to Schumpeter's theory of creative destruction, new products and innovations can lead to the destruction of old products, industries, and ways of doing business. This destruction is necessary for the emergence of new products and industries, which can lead to economic growth and development. Therefore, option B, which states that new products unleash a gale of destruction that drives old products out of the market, is the correct choice.

According to Joseph Schumpeter, the Theory of Creative Destruction Describes