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

Which of the following is an example of an external diseconomy?

Correct answer A. Environmental pollution

Explanation

Environmental pollution imposes costs, such as ill health and damage to property, on third parties who are not compensated, making it a classic negative externality.

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Question 01 Capital Formation, Investment Choice, Information Technology, And Technical Progress

What are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States collectively known as?

Correct answer D. G-7 countries

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Question 02 Capital Formation, Investment Choice, Information Technology, And Technical Progress

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

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