Capital Formation, Investment Choice, Information Technology, And Technical Progress

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2 Jun 2019
Last updated
28 May 2026

Browse all Capital Formation, Investment Choice, Information Technology, And Technical Progress MCQs

Based on their field studies in Africa, James Pickett, D. J. C. Forsyth, and N. S. McBain observed that businesspeople often prefer the most advanced designs without realizing these may not yield the highest profits. What do they attribute this behavior to?

Multiple choice question for Capital Formation, Investment Choice, Information Technology, And Technical Progress. Select an option, then review the explanation below.

Choose the correct answer

Explanation

The authors concluded that the preference for the most sophisticated designs, despite potential lower profitability, stems from an engineering mentality rather than economic considerations.

Practice related questions from the same subject.

  1. 1.During the 1980s, economists noticed that investments in information and communications technology (ICT) did not correspond with increased productivity. What is this phenomenon called?
  2. 2.What term describes market prices that have been modified to reflect the gap between social and private cost-benefit analyses?
  3. 3.Which of the following is an example of external diseconomies?
  4. 4.Immunizing individuals against diseases such as measles, rubella, polio, and cholera to significantly enhance overall social welfare by boosting population health and productivity is an example of what?
  5. 5.Which statement accurately describes labor conditions in Less Developed Countries (LDCs)?

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