In the process described as Schumpeterian economic growth (involving Schumpeter's ideas about growth),
(a) recessions are the object of countercyclical policy designed to minimize the waste
of unemployed labor and other resources.
(b) expansions are considered wasteful because of the tendency for inflation to be
generated near the cyclical peaks.
(c) recessions are considered to be useful cleansing devices for abandoning inefficient
uses of economic resources.
(d) depressions are considered to be necessary to maintain greater equality of wealth
and income over time.
(c)
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What the economist calls externalities create social problems
A) because opportunity costs are low when people live close to one another. B) only when the externalities are negative spillovers. C) partly because people have a limited ability to empathize. D) when people know about all the consequences of their behavior.
Industry A has four firms, each with a 25% market share while industry B has four firms, one firm with a 70% market share and the other three firms with 10% each. According to the Herfindahl-Hirschman Index, industry A is more highly concentrated
a. True b. False