Creative destruction is:
A. the process by which large firms buy up small firms.
B. the process by which new firms and new products replace existing dominant firms and
products.
C. a term coined many years ago by Adam Smith.
D. applicable to planned economies but not to market economies.
Answer: B
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In the 1920s, Germany after the First World War experienced an economic condition which can be best described as:
A. Hyperinflation B. Cost-push inflation C. Unanticipated inflation D. Anticipated inflation
Which of the following characteristics is generally representative of developed countries relative to developing countries?
A. a lower infant mortality rate B. a lower rate of literacy C. lower productivity in the agriculture sector D. a larger percentage of the labor force in rural areas