Question

What is the significance of 'information infrastructure' in a knowledge economy?

1. It ensures easy access to Information and Communication Technology (ICT).
2. It helps in lowering transaction costs.
3. It improves the ability to share, process, and interact with information and knowledge.
4. It is considered less important than physical infrastructure like roads and bridges.

• A. 1, 2, 3
• B. 3 only
• C. All
• D. 1 only

Answer 1

Answer:

A. 1, 2, 3

• A dense and modern information infrastructure is a cornerstone of the knowledge economy.

• This includes robust Information and Communication Technology (ICT) systems that facilitate seamless access to information.

• Its importance lies in its ability to reduce transaction costs, enhance the efficiency of information processing, and foster better interaction and dissemination of knowledge across individuals, organizations, and sectors.

• Without a strong information infrastructure, the flow of knowledge, which is the lifeblood of this economy, would be significantly hampered.