Creative Destruction: Technology and Trade

1. Which of the following is true about creative destruction? *

A) In the short term it can be extremely detrimental for some, but in the long term it can be extremely beneficial.

B) In the short term it can be extremely beneficial for some, but in the long term it can be extremely detrimental.

C) Both in the short term and the long term it is extremely beneficial.

D) Both in the short term and the long term it is extremely detrimental.

2. What are both Kodak and Polaroid examples of? *

A) The desire of people to hold on to old technologies.

B) The need for automation in the workforce.

C) Powerful companies that only increased profits due to creative destruction.

D) The painful side of creative destruction.

3. What does the number of American farmers reveal about creative destruction? *

A) That creative destruction can free up labor for new pursuits.

B) That creative destruction is a recent phenomena.

C) That creative destruction generally lowers output for a short time.

D) That creative destruction can cause an economic recession.

4. What does the American rose industry reveal about creative destruction? *

A) That even trade can cause creative destruction.

B) That creative destruction cannot be applied to all products.

C) That creative destruction can sometimes have no positive effect.

D) That creative destruction can sometimes have no negative effect.