Capital Formation, Investment Choice, Information Technology, And Technical Progress Mcqs for Preparation

In the 1980s economists studying the source of growth observed no positive relationship between information and communications technology (ICT) investments and productivity This is known as ?

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

Market price adjusted to consider differences between social cost-benefit and private cost-benefit calculations are ?

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

An example of external diseconomies is ?

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

Vaccinating people for measles, rubella, polio and cholera to substantially increase net social benefits by improving the health and productivity of the population is an example of ?

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

Which of the following is True is LDCs ?

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

Which of the following is not True ?

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

Lack of absorptive capacity in developing countries results from ?

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

You can see the computer age everywhere but, in the productivity, statistics is a attributed to which economist ?

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

In the long run, expanding educational and training facilities, transportation and communication and other infrastructure in LDCs should increase ?

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

A case when internal economies of scale bring about a continuously falling average cost curve that makes having more than one firm in an industry inefficient is illustrative of ?

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

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