During the past 20 years, there has been substantial FDI in China. What are the expected shortrun effects of this FDI upon the rental rate on capital and wages in China?
a. The rental rate should increase and wages should decrease.
b. The rental rate and wages should both increase.
c. The rental rate and wages should both decrease.
d. The rental rate should decrease and wages should increase.
Ans: d. The rental rate should decrease and wages should increase.
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The curvature of the production function shows that as employment increases, the productivity of labor
A) remains positive and increases. B) remains positive but decreases. C) decreases and becomes negative. D) remains constant.
If the exchange rate changes from $2.00 = 1 euro to $1.98 = 1 euro then
A) the dollar has appreciated. B) the euro has appreciated. C) the euro has stayed constant in value. D) the dollar has depreciated.
Everything else constant, a stronger dollar will mean that
A) vacationing in England becomes more expensive. B) vacationing in England becomes less expensive. C) French cheese becomes more expensive. D) Japanese cars become more expensive.
There are substantial racial differences in college attendance, within income classes
Indicate whether the statement is true or false