Schumpeter

Which of the following best describes Kitchin cycles?

• Long-term cycles driven by revolutionary innovations.

• Medium-term cycles caused by investment in capital goods.

• Short-term cycles caused by inventory adjustments.

• Cycles based on changes in agricultural production.

According to Schumpeter, which of the following drives economic growth?

• Innovation and entrepreneurship.

• Government intervention and regulation.

• Increased savings and reduced spending

• Innovation and entrepreneurship.

Which concept is most closely associated with Schumpeter's view of capitalism?

• Perfect competition

• Creative destruction

• Comparative advantage

• Keynesian multipliers

Which of the following is NOT a characteristic of knowledge as a public good?

• Cumulative nature

• Spillover effects

• Non-rivalry

• Excludability

In Schumpeter’s theory, what role do entrepreneurs play in the economy?

• They focus on preserving existing industries

• They introduce innovations that disrupt markets

• They regulate prices and control inflation

• They minimize risks by avoiding innovation

The “creative destruction” process leads to:

• Elimination of competition

• Continuous economic stagnation

• Replacement of old industries by new ones

• Preservation of existing business models

Why is knowledge considered a public good?

• It is always provided by the government

• It is only useful in academic settings

• It is non-rivalrous and non-excludable

• It cannot be stored or transmitted

Which of the following best describes the non-rivalrous nature of knowledge?

• Once knowledge is used, it disappears

• One person’s use of knowledge does not reduce its availability for others

• Knowledge is only useful when protected by patents

• People must compete to acquire knowledge

What is the primary purpose of a patent?

• To keep knowledge secret from competitors

• To provide government funding for research

• To ensure all inventions remain in the public domain

• To grant the inventor exclusive rights to their invention for a limited time

How long does a patent typically last?

• 5 years

• 10 years

• 20 years

• 50 years