Moderate

In the 1980s economists studying the source of growth observed no positive relationship between information and communications technology (ICT) investments and productivity This is known as ?

Correct answer: B. productivity paradox

  • A. Solow residual
  • B. productivity paradox
  • C. technological followership
  • D. Stieglitz discrepancies

Explanation

The productivity paradox describes the observation that rapid investment in information and communications technology did not initially produce a corresponding rise in measured productivity. It is commonly associated with Robert Solow’s remark that computers were visible everywhere except in productivity statistics.

Last updated

About Macroeconomics

The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.

Practise Macroeconomics

1,462 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Exams that ask Economics questions like this

Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

Related questions