For developing countries, one of the dangers inherent in the inflows of capital that finance investment is
a. increasing unemployment that accompanies foreign investment.
b. rapid outflows of funds that put pressure on exchange rates.
c. the deflation that accompanies inflows of foreign capital.
d. the inflation that accompanies outflows of foreign capital.
b
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Suppose a chemical plant regularly dumps chemicals into a river that must be cleaned up before farmers located downstream can use the water on their crops
Dumping the chemicals into the river saves the chemical plant $750,000 in yearly disposal costs and cleaning the water costs farmers $825,000 each year. Explain what the benevolent social planner would like to see happen in this case.
The argument that developing countries should nurture their infant domestic industries by protecting them from foreign competition is known as
A) the infant industry argument. B) the escape clause hypothesis. C) preservation of the home market. D) institutional fair trade policy.
Self-interest
A) implies that a person must try to increase wealth at all times. B) implies that people will not give away wealth. C) is consistent with many goals that people pursue, including betterment of others. D) applies only to people in market settings.
Under perfect competition, a firm's: a. demand curve and average revnenue curve are identical, but the marginal revenue curve is different. b. demand curve is different, but the average revenue curve and the marginal revenue curve are identical. c. demand curve, average revenue curve and marginal revenue curve are identical
d. none of these is true.