Why do multinational corporations typically pay vastly different wage rates for the same work in different countries?
A) Prospective employees have much better alternative opportunities in some countries than in others.
B) The cost of living is much lower in some countries than in others.
C) The demand for labor is much more elastic in some countries than in others.
D) Supply and demand determine wage rates in some countries but not in others.
E) Unions exist in some countries but not in others.
A
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Refer to Scenario 3 . What is the maximum potential increase in coconut production and maximum potential increase in hut production described in the previous question?
What will be an ideal response?
If a production possibilities frontier is bowed out (concave to the origin), then production occurs under conditions of
A) constant opportunity costs. B) increasing opportunity costs. C) decreasing opportunity costs. D) infinite opportunity costs. E) uncertain opportunity costs.
If demand is unit elastic, then
A) a ten percent increase in price leads to a one percent decrease in quantity demanded. B) the unit change in quantity demanded equals the unit change in price. C) a two percent increase in price leads to a two percent decrease in quantity demanded. D) an increase in price of any amount leads to quantity demanded falling to zero.
Which of the following is correct? Gross private domestic investment:
a. Includes goods that are produced but not consumed. b. Is always greater than Personal Consumption Expenditures. c. Includes stock and bonds. d. All of the above are correct.