Which of the following is a key assumption in factor price insensitivity in response to a fall in FDI?
a. Technology is changing in the capital-intensive sector.
b. Technology is changing in the laborintensive sector.
c. Prices are changing for the capitalintensive good.
d. None of these is a key assumption.
Answer: d. None of these is a key assumption.
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Prosperity in the United States is evenly distributed across the 50 states.
Answer the following statement true (T) or false (F)
There is an empty lot between a playground and a storage unit that has become filled with garbage and overgrown weeds. The lot is surrounded by a fence with a gate. Pipes run beneath it so that anything built there could have access to the city sewer and water supply. Which aspect of the empty lot would economists label as “bads”?
a. the access to water and sewer b. the proximity to the playground and storage unit c. the garbage and weeds d. the fence and the gate
If the market wage for fast-food restaurants is $4 and the government enforces a minimum wage of $7, the unemployment rate will
A. Increase as quantity of labor supplied increases and quantity of labor demanded decreases. B. Not be affected by the minimum wage. C. Increase as quantity of labor supplied increases and quantity of labor demanded increases. D. Increase as quantity of labor supplied decreases and quantity of labor demanded increases.
Since 1970, the United States experienced stagflation
A. only in the 1970s and early 1980s. B. only after the recession of 1990-1991. C. only during the recession of 2008-2009. D. throughout the 2000s.