Economics MCQs

Page No. 170

Lack of absorptive capacity in developing countries results from ?


ainadequate government bureaucracy

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bsmall size of infrastructure

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ctoo few innovative entrepreneurs

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d All of the above are correct

✓



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


aDale Jorgenson

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bJoseph Stieglitz

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cRobert Solow

✓


dTheodore W. Schultz

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View Answer Robert Solow

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


a productivity paradox

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babsorptive capacity

✓


cthe residual

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duncertainly

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View Answer absorptive capacity

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 ?


aa natural monopoly

✓


ban LDC’s limit of one firm to an industry

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can individual firm facing a horizontal (perfectly elastic) demand curve in LDCs

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dThe existence of oligopoly

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View Answer a natural monopoly

Which of the following is not a nature public monopoly ?


a mobile phone

✓


belectricity

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cwater supply

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dpostal service

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View Answer mobile phone

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 ?


a800

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b40,000

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cmore than zero but less than 800

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d less than zero

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he efficiency wage is the ?


awage costs per unit of output

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bwage rate that prevails in LDCs

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cWage rate divided by the productivity of labor

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dmarginal product of labor divided by wage

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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 ?


amaximum capital absorption

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b factor price distortions

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cengineering mentality

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dintermediate technology

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View Answer engineering mentality

Canada France, Germany, Italy, Japan, The United Kingdom and United States are ?


aG-7 countries

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bcountries with highest productivity growth in the world since 1960

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ccountries with decreasing TFP growth since 1990s

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dcountries with the lowest information technology equipment and software index prices

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View Answer G-7 countries

A dual economy is distinguished from other economies by having ?


aan industrial sector and a manufacturing sector

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ba traditional agricultural sector and a modern industrial sector

✓


cstate owner ship of the means of production

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d an industrial sector that concentrates on manufacturing and construction

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