According to the Short­run (Specific­factors) Model

question 74

Multiple Choice

According to the short­run (specific­factors) model,
How will FDI affect the return to capital and the return
To land in the recipient nation?

• A)The returns to land and capital will both decrease.
• B)The return to land will decrease; the return to capital will increase.
• C)The return to land will increase; the return to capital will decrease.
• D)The returns to land and capital will both increase.

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Definitions:

Negative

Negative, in a logical or mathematical context, refers to the denial or opposition to a statement, proposition, or a value less than zero in algebra.

Declarative English Sentence

A sentence that makes a statement or expresses an opinion, contrasted with interrogative, imperative, or exclamatory sentences.

Categorical Proposition

A statement that asserts or denies something about all or some of the members of a category.

Pronoun

A word that takes the place of a noun for a person, place, thing, or idea.