The Balance of Industries and Creative Destruction Practice Questions | Marginal Revolution University

Learn Economics
Teach High School
Teach University

About Us
We're Hiring
Donate
Student Account
Educator Account
Contact Us

Join Our Community of Econ Nerds

Follow us

Courses See all

Principles of Economics: Microeconomics

Principles of Economics: Macroeconomics

Mastering Econometrics

Money Skills

Development Economics
Series See all

Everyday Economics

Nobel Conversations

Economists in the Wild

Women in Economics

Econ Duel
Interactive Practice See all

Supply and Demand

GDP

Trade

Inflation
The Best Econ News Articles

Find the perfect article to explain any econ concept—or sign up for weekly email updates!
Learn More

Free High School Teacher Trainings

Teaching techniques, resources, and professional development credit! Everything you need to make economics fun and engaging for your students.
Learn More
Learn about our mission
High School Teaching Resources See all

By Course:

High School Economics

AP Microeconomics

AP Macroeconomics

Personal Finance

By Type:

Unit Plans

Lesson Plans

Interactive Practice

Assessments
University Teaching Resources See all

By Course:

Principles of Microeconomics

Principles of Macroeconomics

Mastering Econometrics

Development Economics

By Type:

Assessments

Interactive Practice

Lesson Plans

Assignments

Donate
Student
Educator

Practice Questions

The Balance of Industries and Creative Destruction Practice Questions

Let’s review the basic mechanism of the elimination principle with the following questions. When demand rises in Industry X, what happens to profits? Do they rise, fall, or remain unchanged? *

a. Rise

b. Fall

c. Remain unchanged

When that happens, do firms, workers, and capital tend to enter Industry X, or do they tend to leave? *

a. Enter

b. Exit

c. No changes

Does this tend to increase short-run supply in Industry X or reduce it? *

a. Increase

b. Reduce

In the long run, after this rise in demand, what will profits typically be in Industry X? *

a. Greater than 0

b. 0

c. Less than 0

d. Indeterminate from the given information.

Skip to Next Lesson

Back to video

Principles of Economics Microeconomics

Course (105 videos)

Introduction

Introduction to Microeconomics

Practice Questions

Opportunity Cost and Tradeoffs

Practice Questions

Marginal Thinking and the Sunk Cost Fallacy

Practice Questions

Interactive Practice

Supply, Demand, and Equilibrium

The Demand Curve

Practice Questions

The Supply Curve

Practice Questions

The Equilibrium Price and Quantity

Practice Questions

Understanding the Demand Curve: Shifts and Consumer Surplus

Practice Questions

Interactive Practice

What Shifts the Demand Curve?

Practice Questions

Change in Demand vs. Change in Quantity Demanded

Interactive Practice

Understanding the Supply Curve: Shifts and Producer Surplus

Interactive Practice

What Shifts the Supply Curve?

Interactive Practice

Exploring Equilibrium

Interactive Practice

Interactive Practice

Supply and Demand Terminology

Practice Questions

Does the Equilibrium Model Work?

Practice Questions

Elasticity and Its Applications

Elasticity of Demand

Practice Questions

Calculating the Elasticity of Demand

Practice Questions

Office Hours: Elasticity of Demand

Practice Questions

Elasticity of Supply

Practice Questions

Elasticity of Supply: Why Housing is Unaffordable

Practice Questions

Elasticity of Supply: Do Gun Buybacks Work?

Practice Questions

Taxes and Subsidies

Commodity Taxes

Practice Questions

Who Pays the Tax?

Practice Questions

Tax Revenue and Deadweight Loss

Practice Questions

Practice Questions

Practice Questions

The Price System

A Price Is a Signal Wrapped up in an Incentive

Practice Questions

Markets Link the World

Practice Questions

The Great Economic Problem

Practice Questions

Information and Incentives

Practice Questions

Practice Questions

Prediction Markets

Practice Questions

Price Ceilings and Price Floors

Practice Questions

Price Ceilings: Shortages and Quality Reduction

Practice Questions

Price Ceilings: Lines and Search Costs

Practice Questions

Price Ceilings: Deadweight Loss

Practice Questions

Price Ceilings: Misallocation of Resources

Interactive Practice

Price Ceilings: Rent Controls

Practice Questions

Rent Control in Mumbai

Practice Questions

Price Floors: The Minimum Wage

Practice Questions

Price Floors: Airline Fares

Interactive Practice

Why Do Governments Enact Price Controls?

Practice Questions

Price Controls and Communism

Practice Questions

Trade

The Big Ideas of Trade

Practice Questions

Comparative Advantage

Practice Questions

Another Look at Comparative Advantage

Practice Questions

Comparative Advantage Homework

Practice Questions

Tariffs and Protectionism

Interactive Practice

Arguments Against International Trade

Practice Questions

Avengers: The Story of Globalization (Optional)

Practice Questions

Externalities

What Are Negative Externalities?

Practice Questions

Pigouvian Taxes

What Are Positive Externalities?

Practice Questions

Pigouvian Subsidies

Command and Control Solutions

Practice Questions

The Coase Theorem

Practice Questions

Trading Pollution

Practice Questions

A Deeper Look at Tradable Allowances

Practice Questions

Externalities and Incentives: The Economics of COVID

Practice Questions

Costs and Profit Maximization Under Competition

Introduction to the Competitive Firm

Practice Questions

Maximizing Profit Under Competition

Practice Questions

Maximizing Profit and the Average Cost Curve

Practice Questions

Entry, Exit, and Supply Curves: Increasing Costs

Practice Questions

Entry, Exit, and Supply Curves: Constant Costs

Practice Questions

Entry, Exit, and Supply Curves: Decreasing Costs

Practice Questions

Competition and the Invisible Hand

Minimization of Total Industry Costs of Production

Practice Questions

The Balance of Industries and Creative Destruction

Practice Questions

Monopoly

Maximizing Profit Under Monopoly

Practice Questions

Office Hours: Calculating Monopoly Profit

Practice Questions

The Monopoly Markup

Practice Questions

The Costs and Benefits of Monopoly

Practice Questions

Price Discrimination

Introduction to Price Discrimination

Practice Questions

The Social Welfare of Price Discrimination

Practice Questions

Practice Questions

Practice Questions

Labor Markets

The Marginal Product of Labor

Practice Questions

Econ Duel: Is Education Signaling or Skill Building?

Human Capital and Signaling

Practice Questions

The Tradeoff Between Fun and Wages

Practice Questions

Compensating Differentials

Practice Questions

Do Unions Raise Wages?

Practice Questions

Public Goods and the Tragedy of the Commons

Public Goods and Asteroid Defense

Practice Questions

A Deeper Look at Public Goods

Practice Questions

Practice Questions

The Tragedy of the Commons

Practice Questions

Asymmetric Information

Asymmetric Information and Used Cars

Practice Questions

Asymmetric Information in Health Insurance

Practice Questions

Practice Questions

Solutions to Moral Hazard

Practice Questions

Practice Questions

Consumer Choice

Introduction to Consumer Choice

Practice Questions

Budget Constraints

Practice Questions

Indifference Curves

Practice Questions

Consumer Optimization

Practice Questions

Bonus Topics

Office Hours: Game Theory

Practice Questions

Exam

Principles of Economics: Microeconomics

We're Hiring!
Register
Login
Terms of Use

Follow Us

Twitter
Youtube
facebook