A Nation with Cheap, Efficient Communications Is Likely to Be

question 145

Multiple Choice

A nation with cheap, efficient communications is likely to be

• A) richer, ceteris paribus, because transaction costs will be lower and trade greater.
• B) richer only if production of goods is cheaper, too, since trade itself cannot create value.
• C) poorer since it spends so much on communication instead of true productivity.
• D) spending too much on communications, which adds nothing to the value of output.

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Definitions:

Individuals And Groups

refers to the distinct units within social or work contexts, where individuals denote single persons and groups signify a collection of individuals working together or categorized together based on common characteristics or goals.

Organizational Behavior

The study of how people interact within groups, particularly in a work setting, and how this behavior affects the performance of the organization.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Human Capital

The aggregated competencies, insights, and immaterial resources belonging to individuals, capable of producing economic gains for the people, their employers, or their surrounding community.