Economics MCQs

Page No. 170

Lack of absorptive capacity in developing countries results from ?


ainadequate government bureaucracy


bsmall size of infrastructure


ctoo few innovative entrepreneurs


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


bJoseph Stieglitz


cRobert Solow


dTheodore W. Schultz


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


babsorptive capacity


cthe residual


duncertainly


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


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


dThe existence of oligopoly


View Answer a natural monopoly

Which of the following is not a nature public monopoly ?


a mobile phone


belectricity


cwater supply


dpostal service


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


b40,000


cmore than zero but less than 800


d less than zero



he efficiency wage is the ?


awage costs per unit of output


bwage rate that prevails in LDCs


cWage rate divided by the productivity of labor


dmarginal product of labor divided by wage



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


b factor price distortions


cengineering mentality


dintermediate technology


View Answer engineering mentality

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


aG-7 countries


bcountries with highest productivity growth in the world since 1960


ccountries with decreasing TFP growth since 1990s


dcountries with the lowest information technology equipment and software index prices


View Answer G-7 countries

A dual economy is distinguished from other economies by having ?


aan industrial sector and a manufacturing sector


ba traditional agricultural sector and a modern industrial sector


cstate owner ship of the means of production


d an industrial sector that concentrates on manufacturing and construction



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