Which of the following is most likely to be an impact of foreign direct investment?
A. Government revenue of the home country increases.
B. The wage rate declines in the host countries.
C. The rental rate of capital declines in the home country.
D. Temporary unemployment may arise in the home country.
Answer: D
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An example of the principal-agent problem is when
A) managers try to cope with employees that are inefficient. B) proprietors don't receive any money payment for their entrepreneurial skills. C) managers devise penalties that eliminate employee waste. D) managers devise incentives that encourage employees to act in the owner's behalf.
Bette's Breakfast, a perfectly competitive eatery, sells its "Breakfast Special" (the only item on the menu) for $5.00. The costs of waiters, cooks, power, food etc. average out to $3
95 per meal; the costs of the lease, insurance and other such expenses average out to $1.25 per meal. Bette should A) close her doors immediately. B) continue producing in the short and long run. C) continue producing in the short run, but plan to go out of business in the long run. D) raise her prices above the perfectly competitive level. E) lower her output.
When applied to decision making, satisficing means that
Which of the following will NOT change the market supply curve in the short run?
a. An improvement in technology. b. An increase in the price of a variable input. c. A change in the price of a fixed input. d. A per-unit excise tax placed on the producers of a good.