Are there impediments to international movement of labor and capital?
a. Yes, but they apply to labor only, capital mobility is almost completely free.
b. Yes, although these apply to capital, and not to labor.
c. Yes, there are significant (often prohibitive) restrictions on labor and capital mobility.
d. No, these have been removed with the passage of recent trade legislation.
c
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Intermediate goods and services are excluded in the calculation of GDP
Indicate whether the statement is true or false
________ in the foreign interest rate causes the demand for domestic assets to increase and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
When you have diminishing marginal returns to labor
A) variable costs remain constant as more output is produced. B) variable costs fall as more output is produced. C) variable costs rise as more output is produced. D) fixed costs rise as more output is produced because you have to buy more equipment to compensate.
Fixed costs are the expenditures that must be made before production can begin
a. True b. False Indicate whether the statement is true or false