Question

which statement will best describe creative destruction?

Answer 1

In simple words Creative Destruction simply refers to improvement in innovation mechanism by which new production units simply outdates the old outdated ones in order to make way for improved method of productions.

The term "Destruction" in itself explain the whole concept. It shows that some thing is destructed for betterment.

Hence the best statement to explain creative productivity is" Under Creative destruction, Technological change creates new products that simply drive old products out of the market"

The betterment from Creative Destruction is that it saves bothe time and money. These two elements in turn make the workers more productive thus leading to a improved production.

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