Which of the following best summarizes the importance of


Which of the following best summarizes the importance of business failure and the central idea of "creative destruction in a market economy"?

a When a business fails, the assets and resources from that business become unemployed, resulting in higher government subsidies.

b Business failure allows the assets and resources from that business to move into other areas where they will be more productive.

c Only through frequent business failure will it be possible to avoid income being concentrated into the hands of a few rich entrepreneurs.

d The new, rival businesses that drive out old competitors tend to be less efficient and less creative than the older established businesses.

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Microeconomics: Which of the following best summarizes the importance of
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