1

How does the continual hunt for super profit drive ongoing technical change in modern industrial societies? Who are the winners and losers in this process? In your answer refer to at least one of the following: (ONLY REFER TO ONE OF A ORB)

a. The Theory of Value

b. Schumpeter’s process of creative destruction

Question 2

What is economic rent? Explain “technical” rent as a variety of economic rent. Why are relatively enduring super profits associated with innovation often referred to as “technical” rents? Given that renters do not create extra value in the economy, from where in your opinion are their super profits derived? Explain your answer.

Answer rating: 100% (QA)

Basically the theory of creative destruction assumes that longstanding arrangements and assumptions must be destroyed to free up resources and energy to be deployed for innovation To Schumpeter econom... View the full answer