Which of the Following Is Not a Cost-Related Motive of Direct

question 9

Multiple Choice

Which of the following is not a cost-related motive of direct foreign investment?

• A) international diversification
• B) low labor costs
• C) low price of purchasing land
• D) weak value of the foreign currency needed

Understand the implications of price controls (ceilings and floors) on market shortages and surpluses.

Understand the impact of taxes on market equilibrium prices and quantities.

Identify the distribution of tax burdens between buyers and sellers.

Analyze the effect of taxes on consumer and producer surplus.

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Definitions:

Inflation

The pace at which the universal cost levels of goods and services elevate, shrinking the value of money to buy.

Money Supply

The money supply is the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Unemployment

A situation where individuals who are capable of working and are actively seeking employment are unable to find a job.

Aggregate Demand

Totality of demand for all goods and services in an economy, pegged at a given broad price level for a particular timeframe.