Which of the following statements is consistent with the views of Joseph Schumpeter?
A) Research and development by competitive firms is responsible for most technological changes.
B) An economy benefits from firms having market power because these firms are more likely to be able to commit funds for research and development.
C) Enforcement of antitrust laws is necessary to promote competition among firms.
D) A lack of competition discourages firms from developing new technologies.
Answer: B
You might also like to view...
According to this Application, the bias in the CPI would be ________ if new goods are ________ incorporated in CPI calculations
A) smaller; slowly B) smaller; quickly C) negligible; slowly D) greater; immediately
Classical economists or modern day monetarists would suggest that the Fed should
a. always lower the discount rate in order to combat recessions b. increase the reserve requirement in order to reduce the threat of inflation c. set the rate of increase in the money supply to be approximately equal to the economy's long-run full-employment rate of growth d. set the rate of increase in the money supply to be approximately equal to the discount rate e. use its tools, such as raising the discount rate, increasing the reserve requirement,and selling securities, in order to bring inflation down to 0 percent