What are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States collectively known as?
Correct answer D. G-7 countries
Topic / 15 questions
Capital Formation, Investment Choice, Information Technology, And Technical Progress MCQs
Capital Formation, Investment Choice, Information Technology, And Technical Progress MCQs cover how developing countries build capital, choose investment projects and benefit from technology. They help development economics students and CSS, PMS and lecturer test candidates. Every question shows its correct answer instantly, so you can test your grasp of each concept.
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
Based on field research in Africa, James Pickett, D. J. C. Forsyth and N. S. McBain concluded that business people often want the most advanced design without realising it may not be the most profitable. To what did they attribute this attitude?
Correct answer A. Engineering mentality
What is the efficiency wage?
Correct answer D. Wage rate divided by the productivity of labor
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A project yields a net income of $200 a year for 4 years and nothing afterwards. With a discount rate of 5 per cent, what is the discounted value of the total income stream over the 4 years?
Correct answer A. More than zero but less than 800
Which of the following is not a natural public monopoly?
Correct answer B. Mobile phone
Internal economies of scale produce a continuously falling average cost curve, making more than one firm in the industry inefficient. What does this illustrate?
Correct answer A. A natural monopoly
In the long run, what should expanding education, training, transport, communications and other infrastructure in LDCs increase?
Correct answer D. Absorptive capacity
The remark ‘You can see the computer age everywhere but in the productivity statistics’ is attributed to which economist?
Correct answer A. Robert Solow
What causes the lack of absorptive capacity in developing countries?
Correct answer E. All of the above are correct
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Which of the following statements is not true?
Correct answer D. In 2001 internet users per 1,000 people in middle-income countries were greater than in high-income countries.
Which of the following is true in less developed countries (LDCs)?
Correct answer B. Labor is often underemployed, having a low alternative cost
Vaccinating people against measles, rubella, polio and cholera greatly increases net social benefits by improving the population’s health and productivity. What is this an example of?
Correct answer B. External economies
Which of the following is an example of an external diseconomy?
Correct answer A. Environmental pollution
What are market prices called once adjusted for differences between social and private cost-benefit calculations?
Correct answer C. Shadow prices
In the 1980s, economists studying the sources of growth found no positive link between investment in information and communications technology (ICT) and productivity. What is this known as?
Correct answer A. Productivity paradox
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About Capital Formation, Investment Choice, Information Technology, And Technical Progress MCQs
This development economics topic links investment with growth. Questions ask why limited absorptive capacity, such as shortages of skills and infrastructure, restricts how much capital a developing country can use well. You will also meet shadow prices, which adjust market prices for differences between social and private costs and benefits in project appraisal, and efficiency wages. Other items cover the G7 group of industrial countries, the long-run payoff from education, transport and communication infrastructure, natural public monopolies, and field research on appropriate technology in African business. These ideas appear in economics optional and lecturer papers.
Exams that include Capital Formation, Investment Choice, Information Technology, And Technical Progress MCQs
Pakistan
- CSS
- PMS
- PPSC Lecturer tests
India
- UGC NET
- UPSC CSE
Bangladesh
- BCS
- University admission tests (DU, RU, JU)
Frequently asked questions
What is a shadow price?
A shadow price is an adjusted price used in cost-benefit analysis to reflect the true social value or cost of a good, labour or foreign exchange, where market prices are distorted. Developing countries use shadow prices to judge whether a project benefits society as a whole.
What is absorptive capacity?
Absorptive capacity is a country's ability to use additional capital or aid productively. It is limited by shortages of skilled workers, managers, infrastructure and institutions. When absorptive capacity is low, extra investment may be wasted or yield low returns.
How many Capital Formation and Technical Progress MCQs are on MCQs360?
MCQs360 has 15 MCQs on capital formation, investment choice, information technology and technical progress. They are free with no sign-up and show answers instantly, which helps when revising development economics. Revise shadow pricing and absorptive capacity first, since several questions rely on them.
Last reviewed October 2026