According to Joseph Schumpeter, the theory of creative destruction describes a process by which
A) some new products unleash a gale of destruction that drive other new products out of the market.
B) the creation of new products never involves the destruction of old products.
C) new products unleash a gale of destruction that drives old products out of the market.
D) new products are created by the destruction of capital.
Question 2
All else equal, a decrease in the supply of labor will shift the labor supply curve to the left and decrease the equilibrium wage.
Indicate whether the statement is true or false