Category: Development Planning and Policy-making The State, And the Market

Which of the following assumptions underlying input-output analysis raises about its validity ?

I- The technical coefficients are fixed which means so substitution between inputs occurs
II- There are no externalities so that the total effect of carrying out several activities is the sum of the separate effects
III- Each good is produced by only one industry and each industry produces only one commodity
IV- There is no technical change

A. I and II only
B. I, II, III only
C. I, II, IV only
D. I, II, III and IV

Which of the following is not a public policy to promote the private sector ?

A. Investigating development potential through scientific and market research and natural resources surveys
B. Providing adequate infrastructure for public and private agencies
C. Creating markets, including commodity markets, security exchanges, banks credit facilities and insurance companies
D. Increasing market monopolies and oligopolies to help producers