capital formation investment choice information technology and technical progress Mcqs
1. You can see the computer age everywhere but, in the productivity, statistics is a attributed to which economist ?
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A. Theodore W. Schultz

B. Dale Jorgenson

C. Robert Solow

D. Joseph Stieglitz

2. Market price adjusted to consider differences between social cost-benefit and private cost-benefit calculations are ?
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A. shadow prices

B. price distortions

C. consumer surplus

D. exchange rates

3. An example of external diseconomies is ?
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A. a new drug to cure AIDS

B. R&D in robotics

C. environmental pollution

D. scholarship for technical education

4. 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 ?
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A. Stieglitz discrepancies

B. technological followership

C. Solow residual

D. productivity paradox
5. Which of the following is True is LDCs ?
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A. Adapting existing Western technology to LDC conditions requires little creativity

B. It is cheaper to hire labor in LDC because its productivity is relatively higher than in DCs

C. Labor is usually considered the scarce factor

D. Labor is often underemployed, having a low alternative cost
6. he efficiency wage is the ?
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A. wage rate that prevails in LDCs

B. Wage rate divided by the productivity of labor

C. wage costs per unit of output

D. marginal product of labor divided by wage

7. 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 ?
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A. economies of scale

B. external economies

C. net present value

D. negative externality

8. Suppose a project results in a net stream of $200 per year for 4 years, but nothing thereafter, Assume that the discount rate is 5 percent. The discounted value of the total income stream over the 4-year period is ?
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A. 800

B. less than zero

C. 40,000

D. more than zero but less than 800
9. James Pickett D. J. C. Forsyth, and N. S McBain on the basis of field research in Africa, concluded that business people often want to use the most advanced design without knowing that it may not be the most profitable. They attribute this attitude to ?
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A. engineering mentality

B. factor price distortions

C. maximum capital absorption

D. intermediate technology

10. Canada France, Germany, Italy, Japan, The United Kingdom and United States are ?
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A. G-7 countries

B. countries with decreasing TFP growth since 1990s

C. countries with the lowest information technology equipment and software index prices

D. countries with highest productivity growth in the world since 1960

11. Which of the following is not a nature public monopoly ?
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A. mobile phone

B. electricity

C. water supply

D. postal service

12. Lack of absorptive capacity in developing countries results from ?
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A. too few innovative entrepreneurs

B. small size of infrastructure

C. unsuitable technology

D. All of the above are correct

E. inadequate government bureaucracy

13. Which of the following is not True ?
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A. In 2001 the World information technology expenditures were about 1/20 of 1% of world gross investment

B. In 2001 internet users per 1000 people in middle income countries were greater than high income countries

C. Mobile phones do not require the massive infrastructure investment that mainline telephone require

D. 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

14. In the long run, expanding educational and training facilities, transportation and communication and other infrastructure in LDCs should increase ?
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A. productivity paradox

B. uncertainly

C. absorptive capacity

D. the residual

15. 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 ?
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A. The existence of oligopoly

B. a natural monopoly

C. an individual firm facing a horizontal (perfectly elastic) demand curve in LDCs

D. an LDCs limit of one firm to an industry