Final
 MCQ:
Use the following table to answer questions from 1 to 16:
Entities
Physical
Symbolic
Processes
Physical
A
C
Symbolic
B
D
1. Manual Labour should be in Cell………..
A) A B) B C) C D) D
2. Personal Services should be in Cell………..
A) A B) B C) C D) D
3. Sports activities should be in Cell………..
A) A B) B C) C D) D
4. Data Input activities should be in Cell………..
A) A B) B C) C D) D
5. Data storage activities should be in Cell………..
A) A B) B C) C D) D
6. Writing activities should be in Cell………..
A) A B) B C) C D) D
7. Composing should be in Cell………..
A) A B) B C) C D) D
8. Creation Costs should be in Cell………..
A) A B) B C) C D) D
9. Editorial Costs should be in Cell………..
A) A B) B C) C D) D
10. Composition Costs should be in Cell………..
A) A B) B C) C D) D
11. Production Costs should be in Cell………..
A) A B) B C) C D) D
12. Distribution Costs should be in Cell………..
A) A B) B C) C D) D
13. Marketing Costs should be in Cell………..
A) A B) B C) C D) D
14. Agriculture should be in Cell………..
A) A B) B C) C D) D
15. My Lecture should be in Cell………..
A) A B) B C) C D) D
16. Intellectual Games should be in Cell………..
A) A B) B C) C D) D
17. It is Likely that the return of information is over the………..term, while the expenditure is
made.
A.
B.
C.
D.
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Short - immediately
Long - immediately
Short - Latter
Long – Latter.
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Information Economics
18. For the Past decade, in expenditure for…………, reflecting growing use of information in the
economy.
A.
B.
C.
D.
Book Publishing
Journal Publishing
Formal Education
Business Services.
19. Over the Past decade, ………industries have the biggest percentage of GNP in USA.
A.
B.
C.
D.
Transactions
Hardware
Production & Distribution
Software.
20. The costs for production, marketing, and distribution are .......... costs
A.
B.
C.
D.
Capital
Pure
mixed
delivery.
21. The costs of authoring are .......... costs
A.
B.
C.
D.
Capital
Pure
mixed
delivery.
22.The costs of editorial and composing are ............... costs.
A.
B.
C.
D.
Capital
Pure
mixed
delivery
23. The value of entertainment and amusement as uses of information is demonstrated by
A.
B.
C.
D.
The willingness of people to pay
total costs
production costs
marketing
24. ………………..aggregate transmit information and give incentives.
A.
B.
C.
D.
Money
Internet
Prices
databases
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Information Economics
 True & False:
1
The entities of agriculture is physical and the processes is Symbolic.
2
The entities of data Input is physical and the processes is physical.
3
The entities of sports is physical and the processes is physical.
4
The entities of Programming is physical and the processes is Symbolic.
5
The role of information is in decision making only.
6
Information clearly is important in operational management.
7
Information is a result of environmental scan to ensure that there is knowledge of
external reality decision making.
8
Information can not serve as a substitute for physical entities.
9
Information can not be used to influence and persuade.
10 Information is essential in education.
11 Information can not be an education objective in itself.
12 Information maybe an education objective in itself
13 Information is the substance of cultural enrichment, entertainment, and amusement.
14 Information can be service.
15 Information can be a product
16 Information can not be a capital resource
17 Information can be a capital resource.
18 An accumulation of information has more value than the sum of the individual values.
19 An accumulation of information has Less value than the sum of the individual values.
20 Information can not be accumulated.
21 Information can not be depreciated.
22 Information is represented in physical form.
23 If physical form changed, it leads to change information content.
24 Information is hardly and costly transported.
25 Intellectual goods can be created with unlimited physical resources, and frequently as a
by-product of other operations.
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Information Economics
26 Intellectual goods can be created with limited physical resources, and frequently as a
by-product of other operations
27 There is indirect relationship between physical goods and the materials used in
producing them.
28 There is no comparably direct relationship between any kind of good - physical or
symbolic -and the information used in its production
29 There is a clear relationship between the time of acquiring information and the value of
it.
30 Persons differ greatly in perceptions of the value of information, in kinds of use, in
ability and willingness to use, in assessments of costs, and in ability to pay.
31 Most information products and services are a pure Public good.
32 Most information products and services are a pure Private good.
33 Most information products and services lie somewhere between pure private goods
and pure public goods.
34 Use of information decrease as distance increase.
35 Use of information is not affected by the distance users must travel to get access to it.
36 There are immense economies of scale in information.
37
Most information products and services lie somewhere between pure private goods
and pure public goods.
38 Copyright is one means of making information mixture of public and private good
39 The micro-economics of information relates to its role in national economies.
40 The macro-economics of information relates to its role in national economies.
41 Information also relates to effects on national economic policies.
42 One of economic value of macro-economic of information is better workforce.
43 One of economic value of macro-economic of information Is better planning and
marketing.
44 One of economic value of macro-economic of information is better engineering.
45 One of economic value of macro-economic of information is better economic data.
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Information Economics
46 One of economic value of macro-economic of information is better management.
47 Costs are not incurred in acquiring information.
48 Information returns is made immediately while the expenditure is made in long run.
49 Except for the information industries themselves, information is not directly productive
50 Rarely are results clearly attributable to the information on which they were based.
51 Accounting practice treats, information as a direct cost
INFORMATION INDUSTRIES
U.S. Data for 1990
U.S. Data for 1998
Transaction Industries
4.9%
$ 274 B
7.1%
$ 629 B
Hardware & Software Industries
3.4%
190 B
7.6%
665 B
Production & Distribution Industries
14.0%
783 B
17.7%
1,545 B
Total for Information Industries
22.3%
1,147 B
32.4%
2,839 B
Gross National Product
100.0%
$ 5,600 B
100.0%
$ 8,750 B
52 Production & Distribution industries are the lowest percentage of GNP.
53 Hardware & Software industries are the highest percentage of GNP.
PRODUCTION & DISTRIBUTION
U.S. Data for 1990
U.S. Data for 1998
Book Publishing
0.3%
$ 15 B
0.3%
$ 29 B
Journal Publishing
0.3%
15 B
0.3%
30 B
Entertainment
3.2%
180 B
3.8%
330 B
Formal Education
7.0%
392 B
6.9%
601 B
University Research & Development
0.4%
21 B
0.3%
27 B
Business Services
2.9%
160 B
6.0%
528 B
Total
14.0%
$ 783 B
17.7%
$ 1,545 B
54 Of special importance is the steady year by year increase, For the past decade, in
expenditures for °Business Services", reflecting growing use of information in the
economy.
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Information Economics
55 The costs for (1) authoring, (2) editorial, and (3) composition will be treated as delivery
investments.
56 The costs for (1) production, (2) marketing, and (3) distribution as Capital costs.
57 The two types of means of distribution (1) Printed and film, (2) Magnetic tapes (VHSVCR) and optical disks (CD-ROM) distributed by a combination of wholesale
distributors, retail outlets, and libraries.
58 The electronic type of means of distribution, distributed by television (broadcast, cable,
and satellite) and the Internet.
Forms of Distribution
Types of Information
Printed / Film
Magnetic / Optical
Television / Internet
Books
Primary
Tertiary
Tertiary
Scholarly Journals
Primary
Tertiary
Secondary
Software
Primary
Secondary
Databases
Secondary
Primary
Secondary
Secondary
Secondary
Primary
Motion Pictures
Primary
Television
59 “Primary” means that the form is the initial means for distribution, the major source of
income and the basis for recovering most if not all of the capital investment.
60 “Secondary” means the form is a significant alternative means for distribution.
61 “Tertiary” means that the form is speculative, with income Means the form is of no
substantial significance.
62 “Tertiary” means that the form is the initial form for distribution, the major source of
income, and the basis for recovering most if not all of the capital investment.
63 “Secondary” means that the form is the initial form for distribution, the major source of
income, and the basis for recovering most if not all of the capital investment.
64 Databases are primary distributes by books
65 Software is primary distributed by internet.
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Information Economics
67 Internet costs occur at several costs — communication services, network backbones,
domain servers, service providers, and user facilities.
68 Costs for network access are largely dependent on actual use.
69 The rate growth of the internet is so rapid.
70 There are mixtures of funding—public, institutional, advertising, and individual users—
and many of the costs are subsidized, buried in other accounting categories.
71 Many of the Internet costs are borne by the users instead of by the producers and/or
distributors.
72 Sources of digital Libraries
a. Digital files used in production of current print publications
b. Retrospective conversion to digital form from prior print or microform publications
c. Digital files with no parallel in prior print or microform publications.
Distribution of Book Publishing Costs
Royalties
Capital costs
Editorial
Composition
Delivery costs
Production
Distribution
Discount
Total
10%
30%
5%
25%
30%
14%
16%
30%
100%
Distribution of Scholarly Journal Publishing Cost
Capital costs
Editorial
Composition
Delivery costs
Production
Distribution
Total
61%
32%
39%
26%
13%
100%
73 There are royalties costs in book publishing cost and no royalties costs in scholarly
journal publishing costs.
74 The royalty cost of books is bigger than scholarly journal.
75 The royalty cost of books is smaller than scholarly journal.
76 There is a discount costs book publishing costs and no discount costs in Scholarly
Journal Publishing costs.
77 The discount cost of scholarly journal publishing is about 20%.
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Information Economics
78 Capital Cost percentage is greater in Scholarly Journal Publishing Costs Than book
publishing.
79 The value of cultural enrichment, entertainment and amusement as uses of
information is demonstrated by the willingness of people to pay for them.
80 The Capital Cost of Books is bigger than scholarly journal.
81 The discount cost of scholarly journal publishing is about 30%.
82 The other major individual use of information is for education and personal
development.
83 One of value of information are those for industrial training
84 It has been estimated that professionals spend nearly 60 per cent of their time
communicating and working with information.
85 professionals have been estimated that the direct benefits to them are as much as ten
times those costs for obtaining information.
86 More important than direct benefit, though, are increases in productivity.
87 The returns to profitability from investment in information are real and large
88 The power of the market comes from prices.
89 “Planning” the complex of interrelated decisions about the allocation of our available
resources.
90 Planning is to be done centrally, by one authority for the whole economic system.
91 Competition means decentralized planning but monopoly means central Planning.
92 (Competition) decentralized planning made by many separate persons.
93 Monopoly planning is between centrally planning and decentralized planning.
94 Monopoly means decentralized planning but perfect competition means central
panning.
95 Which of these systems are likely to be more efficient depends mainly on the question
under which of them we can expect that fuller use will be made of the existing
knowledge.
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Information Economics