Discuss how Joseph Schumpeter characterized capitalist economies by the process of 'creative destruction'. (a) In your own words, explain what this term means. (b) Based on this definition, give examples of destruction and creation, and identify the winners and the losers in the short and long run.

Discuss how Joseph Schumpeter characterized capitalist economies by the process of 'creative destruction'. (a) In your own words, explain what this term means. (b) Based on this definition, give examples of destruction and creation, and identify the winners and the losers in the short and long run.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter1: Ten Principles Of Economics

Section1.1: How People Make Decisions

Problem 1QQ

See similar textbooks

Related questions

Q: Provide the pros and cons of these strategies. Face-to-face interaction communication Phone…

A: Communication is the process of interchanging the information using the different median.

Q: The real costs of transporting goods and people have declined substantially over time. What impact…

A: An individual producer is the person that manufactures of goods and services on the economy.

Q: Which model of communication acknowledges communication as an ongoing, dynamic process of…

A: At the marketplace, communication is the primary factor to make an economic transaction or an…

Q: Contrast how a market system and a command economy try to cope with economic scarcity.

A: In market system there is private holding of assets & coordinates the activity of economy…

Q: CASE ANALYSIS #2 Islamic Capitalism in Turkey For years now Turkey has been lobbying the European…

A: If we consider the Kayseri example then here there are many companies that gives rooms for the…

Q: Identify each of the following quotes as being an example of either: the coordination problem, the…

A: a) Creative destruction defines as when enterprises fall behind the research and developments. For…

Q: Describe the Incremental Benefit-Cost Analysis?

A: Incremental Benefit-Cost Analysis is an analysis to determine whether the investor to go ahead with…

Q: Define the term Benefit-Cost Ratio?

A: The process of analyzing the total benefits and total costs associated with the implementation of a…

Q: Identify the business and economic implications of differences in culture.

A: Cultural differences are the differences in beliefs, culture, language, decisions, and various other…

Q: QUESTION 40 Which of the following is NOT a characteristic of a capitalist economy?…

A: Capitalist is often conceived of as an economic system in which individual actors own and manage…

Q: Explanation and examples about (Principle two of economic): The cost of something is what you give…

A: Opportunity cost is the next best alternative foregone. So opportunity cost of product A would be…

Q: Several characteristics of capitalist economic systems are listed here. Indicate in the space beside…

A: In an economy, differ ideologies will lead to change the market behavior based on their assumptions,…

Q: 3. Technology has the ability to disrupt industries. You are involved in an industry that is…

A: Porter's five forces is a framework for analysis of the competitive environment for a company. It…

Q: In 200 words, Given the value proposition “A device for managing insects in rice farms without the…

A: Farming and chemicals Farming refers to the agricultural activity under which the farmers produce…

Q: C

A: Covert Operation or action is defined as an activity or activities of the U.S Government to create…

Q: Explain what non-economic (or non-market or non-capitalist) values are involved in your example and…

A: Economic pursuit is a person who acts in nature to improve the quality of life and increase work…

Q: 1. It is one of the barriers to entry when the dominant firm (or firms) may take actions explicitly…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of these communication models explains that the speakers should adjust their messages…

A: DISCLAIMER “Since you have asked multiple questions, we will solve the first question for you. If…

Q: Economic value is a utilitarian concept - do you agree or disagree? briefly explair and justify your…

A: Utilitarianism is a moral philosophy that promotes activities that bring happiness or pleasure while…

Q: Summarize the general framework for benefit-cost analysis?

A: A cost benefit analysis compares the estimated costs and the estimated benefits of any project to…

Q: Karl Marx envisioned a perfect society that would be based on a smoothly running capitalist system…

A: Communist society is a type of societal structure postulated in the Marxist thought that…

Q: Which of the following economic concepts can be defined as the next best alternative given up when…

A: In economics, we deal with resources which are scarce in nature, the ways to utilise them…

Q: A mattress company can create mattresses to sell in retail stores/online or utilize the same…

A: The word "opportunity cost" is a macroeconomic concept that refers to resource shortage. Due to a…

Q: Describe the Incremental Benefit-Cost Ratios?

A: Incremental Benefit-Cost Analysis is an analysis to determine whether the investor to go ahead with…

Q: 1. Implementation and enforcement of the seat belt law have resulted in an increase in the number of…

A: implementation and enforcement of the seat belt law have resulted in an increase in the number of…

Q: Although fiction isn't claiming to be True,it reveals truths about our world or the way (some)…

A: Fiction means that is related to somehow thought that may or may not be related to reality.

Q: Question 1: _____ help to organize a field of study, identify key concepts, understand patterns and…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Question: Which of the following best illustrates the economic way of thinking? a)The ability to…

A: Economic thinking explores how individuals take decisions in the face of shortages, as well as…

Q: Which of the following is an example of a microeconomic topic? a) How to run a business and earn a…

A: Microeconomics deals with factors that influence people's choice, decisions affecting goods market…

Q: To what extent do ethical norms reflect a company’s dedication to the Triple Bottom Line?

A: In finance, when we discuss an organization's bottom line, we normally mean its benefits.…

Q: Which structure demonstrates a culture of consumption? O a mall O a Native American adobe home O a…

A: Answer- Need to find- Which structure demonstrates a culture of consumption Evaluating the…

Q: The term "society" can be described as: A: Organized human interactions B: Social structures or…

A: Society is the term that can be looked into as the collective sum of social interactions and…

Q: The term "creative destruction" means: Group of answer choices We should not have moved into…

A: Economics as a subject deals with the effective allocation of a limited amount of resources on…

Q: Which is characteristic of the capitalistic ideology? unselfish individuals centralized…

A: The economic system in which individual actors own and control property in accordance with their…

Q: True or False. Give reasons also. 1) The meaning assigned to activities may be shared but may also…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Explain how the philosophy of Milton Friedman could have played a role in BP Gulf Oil Spill…

A: Right now, it's really easy to pile upon BP. The "accident," which may have been caused by…

Q: Is educational technology still necessary when we go back to the traditional face to face classes?…

A: The sum of any skills, techniques, processes, and methods that are being used in the production of…

Q: Mr. Collins decides to handle the sale of his mother’s house to the present tenants. Which economic…

A: The market is a location where the transaction of services and commodities takes place. Product…

Q: Some large hardware stores such as Home Depot boast of carrying as many as 20,000 different products…

A: A market is a place where the buyers and the sellers meet and interact with each other through…

Q: Economic models are: Precise representations of reality that include as many details as possible in…

A: In economics, economists play an important role to explain the significance of studing economics and…

Q: Analyze and discuss the budget impact (the costs in dollars) of implementing and maintaining a model…

A: The practise of assigning a firm's financial resources is referred to as budgeting. Although…

Q: 2-Porter's Value Chain Model identifies activities where organizations can use competitive…

A: Porter’s Value Chain model states a strategic management tool which helps by breaking an…

Q: Technology and innovation are continuously introducing changes in our society. Provide advantages…

A: The economist Joseph Schumpter emphasized on the role of innovation as creative destruction. Through…

Q: What mechanism Islamic economic system provides to encounter those flaws? Those flaws mean…

A: (a) The Islamic monetary framework is the assortment of rules, qualities and norms of direct that…

Q: What are the three problem goals of Benefit-cost analysis?

A: The Benefit-cost analysis plays a crucial in determining whether a project is to be implemented or…

Question

Discuss how Joseph Schumpeter characterized capitalist economies by the process of 'creative
destruction'.
(a) In your own words, explain what this term means.
(b) Based on this definition, give examples of destruction and creation, and identify the
winners and the losers in the short and long run.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What do you see as the strongest moral consideration in favor of capitalism? What do you see as the strongest objection to it? How capitalist is our economic system today? What do you see as the major economic challenges facing our society today and, in particular, your generation?
How might conscious capitalism be applied in international markets? Give an example of a company that has exercised conscious capitalism and why it has worked. Why is it important? How would you leverage that strategy as part of the Christian worldview? Social responsibility and Christian worldview?
Identify each of the following quotes as being an example of either: the coordination problem, the invisible hand, creative destruction, or the incentive problem. a. “If you compare a list of today’s most powerful and profitable companies with a similar list from 30 years ago, you will see lots of new entries.” b. “Managers in the old Soviet Union often sacrificed product quality and variety because they were being awarded bonuses for quantitative, not qualitative, targets.” c. “Each day, central planners in the old Soviet Union were tasked with setting 27 million prices—correctly.” d. “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”
The term "creative destruction" means: Group of answer choices We should not have moved into our modern life style using cars and buses, and tractors to plough the land, because this has destroyed the better quality life we could have had without cars, buses and tractors. Capitalism is inevitably destructive. Human nature is unavoidably both creative and destructive, and most often we combine the two in our every day life. In order to advance to newer, better, products, we have to discard our old products and move away from less efficient ways of production.
With regard to the Great Pacific Garbage Patch, respond to the following: What kinds of market failure have led to this problem? (Be as specific as possible and provide examples when and as appropriate.) How would a systems thinking approach be helpful in terms of analyzing the roots of this problem and beginning to consider possible solutions? What kinds of policies and institutions might be needed to deal with this problem and to prevent similar problems? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Why is private property and competition are the most important to a capitalist economy? Support your answer.
Is educational technology still necessary when we go back to the traditional face to face classes? Why yes and why not?
Several characteristics of capitalist economic systems are listed here. Indicate in the space beside each characteristicwhether it best describes individualistic capitalism (IC) or communitarian capitalism (CC).____ a. government and business cooperation____ b. high job mobility____ c. profit maximization____ d. more value placed on the interests of employees and consumers____ e. self-interest paramount____ f. long-range economic planning
Karl Marx envisioned a perfect society that would be based on a smoothly running capitalist system true or false?
Why mainstream economics has intentionally misinterpreted the pioneers of economic theory?
QUESTION 40 Which of the following is NOT a characteristic of a capitalist economy? A. Economic agents pursue their self-interest B. Freedom of enterprise C. Private property D. Excessive government regulations
Scenario: A country has been suspected of ethnic cleansing or genocide, and the United Nations is considering intervention. The current government is a totalitarian dictatorship. Is it ethically permissible to impose democracy on an undemocratic regime? Why, or why not? Explain why you think the action proposed in this scenario is or is not ethically permissible. Describe how culture influences your opinion about this. Explain how your ethical frameworks influence your opinion about this.