Many governments actively work to:
A. attract foreign direct investment, hoping it will build up their capital stock when domestic savings aren't sufficient.
B. attract foreign direct investment, so that when foreign companies invest in local firms, they can transfer human capital to local managers.
C. discourage foreign direct investment, in an effort to encourage locals to invest in their own economy.
D. discourage foreign direct investment, in an effort to avoid "crowding out."
A. attract foreign direct investment, hoping it will build up their capital stock when domestic savings aren't sufficient.
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In the foreign exchange market, how does a change in the expected future U.S. exchange rate affect the demand for dollars?
What will be an ideal response?
Suppose a firm has one variable input, labor. Why is the MRPL curve for a competitive firm above the MRPL curve for a monopolist?
A) Without competition from other firms, monopolies are less efficient and the marginal product of labor is lower at each level of output. B) Although the marginal product of labor may be the same under both market structures, the marginal revenue of the monopoly declines with output. C) Monopolists have less incentive to invest in worker training and other methods for improving labor productivity, so the marginal product of labor is lower in the monopoly case. D) none of the above
Of the following, which is not an economic rationale for public utility regulation?
a. production process exhibiting increasing returns to scale b. constant cost industry c. avoidance of duplication of facilities d. protection of consumers from price discrimination e. none of the above
Studies of U.S.-Canadian free trade have concluded that the number of new jobs created in Canadian manufacturing were _________ the number of jobs lost elsewhere in Canadian manufacturing due to free trade.
a. less than b. equal to c. greater than d. substantially greater than