It Is Difficult to Quantify How Much the Use of IT

question 51

Multiple Choice

It is difficult to quantify how much the use of IT has contributed to worker productivity because:

• A)many other factors influence worker productivity rates besides IT
• B)organizational efficiency tends to decrease despite increased investments in IT
• C)all IT investments produce intangible benefits that cannot be analyzed
• D)workers merely use the time provided by IT implementation to do some small tasks

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Definitions:

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with environmental, health, and safety concerns of public and private actions.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction.

Negative Externalities

Unintended adverse effects of an economic activity on unrelated third parties; they represent a failure of the market to fully account for the impacts of transactions.

Social Planner

A hypothetical figure in economic theories who makes decisions designed to allocate resources efficiently and achieve social welfare objectives.