An argument in favor of foreign direct investment is that it tends to
(a) reduce inequality.
(b) promote rural development.
(c) increase access to modern technology.
(d) decrease local ownership.
(e) none of the above.
C
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Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy. Figure 5-3 shows four diagrams that represent different changes in the macroeconomy. Choose the diagram that best represents the situations described in the following questions.Figure 5-3
Which graph in Figure 5-3 best represents the economic conditions of the American economy in 2001?
A. 1 B. 2 C. 3 D. 4
If the government institutes a specific tax for a good that has a perfectly inelastic demand curve
A) the producer passes the entire tax on to the consumer. B) the producer must absorb the entire tax. C) the producer can generally only pass part of the tax onto the consumer. D) the equilibrium price drops.
In the long-run, profits will exist for firms in monopolistically competitive firms but not monopoly
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. In the foreign exchange market, if Americans significantly increase their investments in securities in British financial markets, one effect is that the dollar will tend to depreciate against the pound. 2. If the organizers of a major sports event set the ticket price above the equilibrium level, then scalping will develop in a secondary market for tickets. 3. The presence of ticket scalpers in popular events like concerts will hurt consumers who buy from the scalpers. 4. In cases where sellers have a fixed number of units of a product to sell, the supply curve will be horizontal. 5. In cases where the supply curve is vertical, any change in demand will cause only a change in price but no change in quantity.