Schumpeter

Question 1

Creative Destruction (Schumpeter)

Answer 1

The economic structure is always revolutioninzing from within, the old gets replaced with the new, leading to destruction of the and creative innovation of the new

Question 2

The Stationary Economy (Schumpeter)

Answer 2

1) Homo oeconomicus by habit
2) Markets as systems of allocation of land and labour
3) Normal scenario: tendency toward equilibrium

Question 3

Entrepreneur according to Schumpeter

Answer 3

An entrepreneur is a select, extraordinary individual driven by “the dream and will to found a private empire” rather than mere profit, who innovatively markets and attracts finance capital to realize their vision, not the inventor but the marketeer

Question 4

What does innovation do? (Schumpeter)

Answer 4

(1) Establish a market for a new product
(2) Discover a new market for an already existing product
(3) Find a new, more efficient method of production
(4) Acquire a new natural resource
(5) Implement a new way of organizing production more efficiently