Are There Impediments to International Movement of Labor and Capital

question 85

Multiple Choice

Are there impediments to international movement of labor and capital?

• A)Yes, but they apply to labor only; capital mobility is almost completely free.
• B)Yes, although these apply to capital, and not to labor.
• C)Yes, there are significant (often prohibitive) restrictions on labor and capital mobility.
• D)No, these have been removed with the passage of recent trade legislation.

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Definitions:

Corporations

Legal entities that are separate and distinct from their owners, created to conduct business, can enter into contracts, loan and borrow money, sue and be sued.

Normative Economic Statement

An opinion or value judgment about what ought to be, rather than what is measurable or empirically observable.

Legal Minimum Wage

The lowest hourly, daily, or monthly remuneration that employers are legally allowed to pay their workers.

Unemployment

The situation when individuals who are capable of working and are actively seeking work are unable to find employment.