According to the shortrun (specificfactors) model, how will FDI affect the return to capital and the return to land in the recipient nation?
a. The returns to land and capital will both decrease.
b. The return to land will decrease; the return to capital will increase.
c. The return to land will increase; the return to capital will decrease.
d. The returns to land and capital will both increase.
Ans: b. The return to land will decrease; the return to capital will increase.
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The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is $500 per week and total fixed costs are $600 per week. What is the marginal cost of producing the 90th unit?
A) $10.00 B) $24.92 C) $31.61 D) $50.00
The elasticity of supply does NOT depend on
A) resource substitution possibilities. B) the fraction of income spent on the product. C) the time elapsed since the price change. D) none of the above because all of the factors listed affect the elasticity of supply.
"Tax cuts, by providing incentives to work, save, and invest, will raise employment and lower the price level." This argument is made by the:
a. Keynesian economists. b. supply-side economists. c. classical economists. d. monetarists.
Poverty is considered to be more permanent in the United States than it is in other nations.
Answer the following statement true (T) or false (F)