#1
Which of the following is a characteristic of economic growth?
Increase in the production of goods and services over time
ExplanationEconomic growth entails a rise in the output of goods and services.
#2
What is the primary driver of technological advancements?
Consumer demand
ExplanationTechnological advancements are largely fueled by consumer needs and preferences.
#3
What role does human capital play in fostering economic growth through technological advancements?
Human capital enhances the capacity for innovation and adoption of new technologies
ExplanationHuman capital, comprising skills and knowledge, is crucial for driving innovation and utilizing technological advancements effectively.
#4
Which economic indicator is commonly used to measure technological progress?
Total Factor Productivity (TFP)
ExplanationTFP is frequently used to gauge the efficiency with which inputs are transformed into outputs, reflecting technological progress.
#5
What is the significance of Moore's Law in the context of technological advancements?
Moore's Law states that the processing power of computers doubles approximately every two years
ExplanationMoore's Law, a foundational principle in computing, describes the exponential growth in computing power over time, driving technological advancements.
#6
What is the concept of 'digital divide'?
The gap between individuals with high and low income levels in their access to digital technologies
ExplanationThe digital divide refers to the disparity in access to and use of digital technologies between different socio-economic groups or regions.
#7
Which of the following best describes the concept of 'technological diffusion'?
The process by which new technologies spread from one society to another
ExplanationTechnological diffusion refers to the spread of new innovations across different societies.
#8
What is the Solow Residual also known as?
Total Factor Productivity (TFP)
ExplanationThe Solow Residual, or TFP, represents the portion of output growth not explained by traditional factors like labor and capital.
#9
What is the 'productivity paradox' in relation to technological advancements?
It refers to the decline in productivity despite technological advancements
ExplanationThe productivity paradox describes the phenomenon where technological progress does not always lead to expected increases in productivity.
#10
Which economic theory suggests that technological advancements lead to long-term economic growth?
Endogenous growth theory
ExplanationEndogenous growth theory posits that technological progress is a key driver of sustained economic growth.
#11
What is the role of research and development (R&D) in economic growth?
R&D fosters innovation and drives long-term economic growth
ExplanationInvestments in research and development stimulate innovation, leading to economic growth over time.
#12
Which sector typically experiences the highest rates of technological innovation?
Services
ExplanationThe service sector often sees rapid technological innovation due to its focus on intangible products and customer-centric solutions.
#13
Which of the following is NOT a factor influencing economic growth?
Social unrest
ExplanationWhile social unrest can impact various aspects of society, it is not typically considered a direct factor in economic growth.
#14
What is meant by 'creative destruction' in the context of technological advancements?
The process of eliminating traditional industries and jobs due to innovation
ExplanationCreative destruction describes the upheaval caused by the introduction of new technologies, leading to the decline of outdated industries.
#15
Which of the following is NOT a characteristic of technological advancements in the digital age?
Decreased connectivity and globalization
ExplanationTechnological advancements in the digital age typically promote increased connectivity and globalization.
#16
What is the 'technology adoption curve' used to illustrate?
The diffusion of new technologies within a population over time
ExplanationThe technology adoption curve depicts the rate at which new technologies are embraced by different segments of society over time.
#17
What is the relationship between economic growth and income inequality?
Economic growth widens income inequality
ExplanationWhile economic growth can improve overall prosperity, it often exacerbates income disparities within societies.
#18
What is meant by the term 'technological singularity'?
A hypothetical point in the future when technological growth becomes uncontrollable and irreversible
ExplanationTechnological singularity refers to a theoretical event horizon where technological progress accelerates beyond human comprehension or control.