* not completed

. Productivity is measured by:

The growth in output of a firm correct incorrect

The growth in profits of a firm correct incorrect

Total output/total input correct incorrect

Total amount of investment in capital goods correct incorrect

* not completed

. What is meant by the term 'economies of scale'?

That big firms will always be more efficient than small ones. correct incorrect

That big firms can always invest more than small ones and so can spend more on resource and development. correct incorrect

That bigger economies will always perform better than smaller ones. correct incorrect

That as markets grow in size businesses can adapt production techniques to meet increased demand and in the process lower average costs. correct incorrect

* not completed

. Which of the following factors did Adam Smith feel were key to explaining economic growth?

Accumulation of physical capital correct incorrect

Technological progress correct incorrect

Specialization and free trade correct incorrect

All of the above correct incorrect

* not completed

. The division of labour refers to:

The differences in skill levels between workers. correct incorrect

The idea that if production can be broken down into specific tasks, with workers specializing in each task, then productivity can be increased. This is because each worker can become more efficient in their particular task. correct incorrect

A division between the workers in a business and its owners. correct incorrect

The idea that for profits to be generated it is important that business owners are separate from the labour force. correct incorrect

* not completed

. The economist Robert Gordon sees the development of capitalism as occurring in three stages that he labels IR1, IR2, and IR3. Which technology is most closely associated with IR2?

The development of robots in industry correct incorrect

The rise of information technology correct incorrect

The widespread availability of indoor plumbing correct incorrect

Electricity correct incorrect

* not completed

. Which economist argued that it was the function of enterprise that was the most vital ingredient in bringing about technological change?

Joseph Schumpeter correct incorrect

Adam Smith correct incorrect

Karl Marx correct incorrect

Art Solow correct incorrect

* not completed

. What is meant by the term 'comprador capitalism'?

A form of capitalism in developing countries whereby businesses in the developing countries try to copy the technology of the more developed ones. correct incorrect

A form of capitalism in developing countries whereby ruling elites and foreign commercial interests siphon off profits preventing these being re-invested into the businesses. correct incorrect

A form of capitalism that ensures that growth will be 'inclusive'. correct incorrect

That capitalism is by its very nature highly competitive and it is this that gives the spur to competition. correct incorrect

* not completed

. The idea of 'creative destruction', as developed by the economist Schumpeter, is best described as:

The tendency for technology to sometimes have negative externalities. correct incorrect

The abilities of monopoly firms to build powerful market positions. correct incorrect

The way in which innovation will be constant and will involve the replacement of existing businesses by companies using new and better technology. correct incorrect

The way in which many inventions arise out of the research and development of military developments. correct incorrect

* not completed

. If, as a result of a technological change, a company is able to develop new methods of production and thus improve quality and reduce costs this would be an example of:

Product innovation correct incorrect

Product imitation correct incorrect

Product invention correct incorrect

Process innovation correct incorrect

* not completed

. What is meant by the term 'the productivity paradox' in relation to spending on ICT?

That spending on ICT replaces human labour correct incorrect

That despite the rise in the presence of ICT there has been a decrease in growth rates compared to previous historical periods correct incorrect

It occurs when 'high-tech' solutions replace 'low-tech' ones correct incorrect

That spending on ICT will eventually lead to high growth rates in the future correct incorrect

* not completed

. In what sense is the term 'the burden of knowledge' used in relation to the connection between the impact of technology on growth?

That because there is increasingly more and more to learn it takes longer for people to come up with new ideas and innovations. correct incorrect

That because discoveries of new ideas and knowledge may require large amounts of research and development spending, companies need to be protected by patents and copyright law. correct incorrect

The private sector alone cannot afford to take on the burden of spending on research and development. correct incorrect

For first movers, there is always a risk in exploring new ideas. correct incorrect

* not completed

. Which economist was the first to be most associated with the idea that growth over time inevitably progresses through a series of business cycles or waves?

Smith correct incorrect

Gordon correct incorrect

Schumpeter correct incorrect

Kondratiev correct incorrect