A firm's foreign direct investment. decisions are, in the case of horizontal FDI, strongly influenced by ________ and, in the case of vertical FDI, strongly influenced by ________
A) trade costs; production costs
B) materials costs; labor costs
C) production costs; materials costs
D) production costs; trade costs
E) labor costs; trade costs
A
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Figure 5-2
In Figure 5-2, consumer surplus is measured by the area
a.
ABC.
b.
OBCD.
c.
OACD.
d.
DCE.
Consumption will generally increase when the income tax rate ________ or transfer payments ________.
A. increases; increase B. increases; decrease C. decreases; increase D. decreases; decrease
A decision by foreign central banks to sell their holdings of U.S. Treasury bonds will
A) lower bond prices and interest rates in the United States. B) increase bond prices and lower interest rates in the United States. C) lower bond prices and increase interest rates in the United States. D) increase bond prices and interest rates in the United States.
During a recession, when unemployment is rising, the number of new jobs created is, typically, ________
A) large, but smaller than the number of jobs lost B) small, and below the number of jobs lost C) small, but higher than the number of jobs lost D) large, but smaller than net entrants to the labor force