Question

which of the choices is the best example of creative destruction?
the prime minister signs into law that the minimum wage will go down by 50 cents.
an antitrust suit is filed in court against a monopolist.
in the past month, there were 20,000 layoffs but 22,000 new hires.
a chemical plant decides to use a new process in their reactions, which after combustion results in large amounts of pink smoke being emitted to the nearby town and consequent fires in the chemical plant.
the typewriter industry goes bankrupt and lays off all its workers. in sharp contrast, the burgeoning electronic word processing industry hires 10,000 workers that same year. this type of unemployment resulting from the shift in

Explanation:

Creative destruction is a concept where new innovations or processes replace old ones. In the case of the typewriter industry going bankrupt and the electronic word - processing industry hiring workers, it shows the old (typewriter) being replaced by the new (electronic word - processing). The other options:

• A chemical plant changing its process (even with some negative environmental impact) is just a process change within the same industry, not creative destruction.
• An antitrust suit is about regulating a monopoly, not about one industry replacing another.
• A change in minimum wage is a labor - market policy change, not related to creative destruction.

Answer:

The typewriter industry goes bankrupt and lays off all its workers. In sharp contrast, the burgeoning electronic word processing industry hires 10,000 workers that same year. This type of unemployment resulting from the shift in.