A less-developed nation will be able to benefit substantially by adopting the technologies and the business practices that have been successful in other nations, but only if
a. its wages are low enough.
b. its population is large enough.
c. it first educates its citizens well, so they can use the new ideas.
d. it improves its institutions so that investors are willing to import the capital and any expertise needed to take advantage of the advanced production techniques that are available.
D
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The short-run effect of an increase in the supply of money is
A) an increase in the price level, a decrease in real Gross Domestic Product (GDP), but an increase in nominal national income. B) an increase in the price level but not in real Gross Domestic Product (GDP). C) an increase in both real Gross Domestic Product (GDP) and the price level. D) an increase in real Gross Domestic Product (GDP) but not in the price level.
During periods of high inflation, such as the 1979-1980 period, the existence of usury laws may cause
a. nominal rates of interest to be above real rates. b. negative nominal rates of interest. c. negative real rates of interest. d. real rates of interest to be above nominal rates.
Based on the graph showing the effects of an investment tax credit or a technological change, enacting an investment tax credit would ______.
a. create a higher equilibrium quantity of loanable funds exchanged
b. create a lower equilibrium quantity of loanable funds exchanged
c. have no influence on the equilibrium quantity of loanable funds exchanged
d. drive the equilibrium quantity of loanable funds exchanged to zero
When a change in the price level leads to a change in the quantity of net exports demanded, it is called the:
A) international trade effect. B) export effect. C) import effect. D) net export effect. E) interest rate effect.