The process by which new products and methods of production are continuously replacing old ones is known as:
A) opportunity cost.
B) the production possibilities frontier.
C) creative destruction.
D) the fallacy of composition.

Question

Quizplus · Accepted Answer

The process described in the question is known as creative destruction, which refers to the constant dismantling and replacement of outdated products and production methods with newer, more efficient ones. Option A, opportunity cost, refers to the idea of sacrificing one thing in order to gain another, and is not the same as the ongoing process of innovation and development described in the question. Option B, the production possibilities frontier, refers to the maximum output that can be produced given available resources and technology, but does not capture the ongoing process of replacement and innovation. Option D, the fallacy of composition, refers to the mistaken belief that what is true of the parts is true of the whole, and is not relevant to the process described in the question.

The Process by Which New Products and Methods of Production