Which of the following is inconsistent with the Schumpeter's theory of development?
A)The course of growth is continuous
B)The output expansion, initiated by the entrepreneur, increases in size with time, making it cumulative
C)Growth takes place on account of entrepreneurs who, with the help of bank credit, invest ininnovative activity
D)Capitalism destroys itself by being successful through the erosion of its institutions, by the hostility of its intellectuals and other elite classes, and also by the weakening of entrepreneurial innovation

Question

Quizplus · Accepted Answer

Schumpeter's theory of development, also known as creative destruction, suggests that economic growth is not a smooth, continuous process but rather one characterized by cycles of innovation and destruction. Therefore, the idea that growth is continuous contradicts Schumpeter's view that development occurs through disruptive innovations leading to periods of rapid change followed by adjustments.

Which of the Following Is Inconsistent with the Schumpeter's Theory