What are the main forms through which foreign capital flows into LDCs? Discuss the evolution of the various forms across the last decade
What will be an ideal response?
Official and private flows. Private flows are made up of FDI, portfolio investment and commercial bank loans. Official flows are now much less important than they were at the beginning of the 1990s (see Figure 14.3). In recent years, bank loans represent net outflows for LDCs.
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In Sewei's lawnmowing business, in order to produce each mowed lawn, Sewei must hire exactly one unit of capital (a lawnmower) and exactly one unit of labor. Describe the elasticity of substitution between labor and capital
What will be an ideal response?
The Sherman Antitrust Act of 1890 is the federal antitrust law that prohibits:
a. monopolization and conspiracies to restrain trade. b. mergers the substantially lessen competition. c. exclusive dealing, tying contracts, and interlocking directorates. d. unfair methods of competition in commerce.
Which scenario will most likely happen as employers and employees increase their usage of the Internet in the job search process?
a. Job-related information will become more costly and cyclical unemployment will go up. b. Job-related information will become less costly and frictional unemployment will go up. c. Job-related information will become more costly and structural unemployment will go down. d. Job-related information will become less costly and frictional unemployment will go down.
Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today?
a. The impact on both price and quantity is ambiguous. b. Price will increase; quantity is ambiguous c. Price will increase; quantity will increase d. Price will increase; quantity will decrease e. Price will decrease; quantity is ambiguous.