MCQOPTIONS
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MCQOPTIONS
This section includes 13 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
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 |
| Answer» D. Theodore W. Schultz | |
| 2. |
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 |
| Answer» B. It is cheaper to hire labor in LDC because its productivity is relatively higher than in DCs | |
| 3. |
Which of the following is not a nature public monopoly ? |
| A. | mobile phone |
| B. | electricity |
| C. | water supply |
| D. | postal service |
| Answer» B. electricity | |
| 4. |
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 |
| Answer» C. negative externality | |
| 5. |
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 |
| Answer» D. exchange rates | |
| 6. |
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 |
| Answer» F. | |
| 7. |
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 ? |
| A. | maximum capital absorption |
| B. | factor price distortions |
| C. | engineering mentality |
| D. | intermediate technology |
| Answer» D. intermediate technology | |
| 8. |
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 |
| Answer» C. the residual | |
| 9. |
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 |
| Answer» C. technological followership | |
| 10. |
he efficiency wage is the ? |
| A. | wage costs per unit of output |
| B. | wage rate that prevails in LDCs |
| C. | Wage rate divided by the productivity of labor |
| D. | marginal product of labor divided by wage |
| Answer» D. marginal product of labor divided by wage | |
| 11. |
Canada France, Germany, Italy, Japan, The United Kingdom and United States are ? |
| A. | G-7 countries |
| B. | countries with highest productivity growth in the world since 1960 |
| C. | countries with decreasing TFP growth since 1990s |
| D. | countries with the lowest information technology equipment and software index prices |
| Answer» B. countries with highest productivity growth in the world since 1960 | |
| 12. |
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 |
| Answer» E. | |
| 13. |
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 |
| Answer» B. an LDC’s limit of one firm to an industry | |