What is a generalization that explains a set of facts or phenomena but is not an absolute truth

• A fact
• A theory
• A principle
• A law

Answer explanation

A theory is a generalization that explains facts or phenomena not an absolute truth

Who was the proponent of the Innovation Theory

• John Maynard Keynes
• Joseph Schumpeter
• Alfred Marshall
• Frank Knight

Answer explanation

Joseph Schumpeter contributed the Innovation Theory on entrepreneurship

What concept describes economic development as a product of structural change or innovation

• Keynesian Theory
• Innovation Theory
• Sociological Theory
• Technological Theory

Answer explanation

The Innovation Theory regards economic development as the product of structural change or innovation

What term did Schumpeter use for the process where innovation destroys a static economy

• Creative Destruction
• Market Equilibrium
• Economic Depression
• Supply and Demand

Answer explanation

Innovation causes the creative destruction of the static mode of the economy

Which of the following is NOT a form of innovation introduced by an entrepreneur

• New product
• New production method
• Maintaining status quo
• New market

Answer explanation

Maintaining the status quo is the opposite of innovation which propels change

What theory emphasizes the government's role in economic development during a depression

• Innovation Theory
• Alfred Marshall Theory
• Keynesian Theory
• Gap-Filling Theory

Answer explanation

The Keynesian Theory emphasizes the role of the government in entrepreneurial development during depression

Who developed the Keynesian Theory on entrepreneurship

• Joseph Schumpeter
• Alfred Marshall
• Frank Knight
• John Maynard Keynes

Answer explanation

John Maynard Keynes developed the Keynesian Theory

What does the Keynesian theory suggest the government should do during an economic depression

• Reduce spending
• Increase taxes
• Pour more money into the economy
• Avoid participation

Answer explanation

The government must make a strong intervention by pouring more money into the economy

Who identified four factors of production including organization

• Alfred Marshall
• Max Weber
• Israel Kirzner
• Joseph Schumpeter

Answer explanation

Alfred Marshall asserted that there are four factors in production land labor capital and organization

Which factor of production did Alfred Marshall consider the coordinating element

• Land
• Labor
• Capital
• Organization

Answer explanation

Marshall considered organization as the coordinating element of production