Capital Formation, Investment Choice, Information Technology, And Technical Progress

A. Solow residual
B. productivity paradox
C. technological followership
D. Stieglitz discrepancies

A. price distortions
B. consumer surplus
C. shadow prices
D. exchange rates

A. scholarship for technical education
B. R&D in robotics
C. a new drug to cure AIDS
D. environmental pollution

A. economies of scale
B. external economies
C. negative externality
D. net present value

A. Labor is often underemployed, having a low alternative cost
B. It is cheaper to hire labor in LDC because its productivity is relatively higher than in DCs
C. Adapting existing Western technology to LDC conditions requires little creativity
D. Labor is usually considered the scarce factor

A. In 1990 the world had 98 mainline phones and 2 mobile phones per 1,000 people: in 2001 169 mainline and 153 mobiles per 1000
B. Mobile phones do not require the massive infrastructure investment that mainline telephone require
C. In 2001 the World information technology expenditures were about 1/20 of 1% of world gross investment
D. In 2001 internet users per 1000 people in middle income countries were greater than high income countries

A. inadequate government bureaucracy
B. small size of infrastructure
C. too few innovative entrepreneurs
D. unsuitable technology
E. All of the above are correct

A. Dale Jorgenson
B. Joseph Stieglitz
C. Robert Solow
D. Theodore W. Schultz

A. productivity paradox
B. absorptive capacity
C. the residual
D. uncertainly

A. a natural monopoly
B. an LDC’s limit of one firm to an industry
C. an individual firm facing a horizontal (perfectly elastic) demand curve in LDCs
D. The existence of oligopoly