In the 1980s and 1990s, an Increasing Number of States

question 14

Multiple Choice

In the 1980s and 1990s, an increasing number of states removed the restrictions on capital flows, one by one, that had been part of every state's policies since World War II. Why did states remove these controls?

• A) Actors who controlled a lot of capital put pressure on governments to allow freer movement.
• B) States removed these controls because allowing capital mobility provided access to massive amounts of international capital.
• C) Liberalization is the belief that markets are better than governments at allocating economic resources.
• D) All of the above are true.

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Definitions:

Utility Costs

The expenses associated with using utilities such as water, electricity, and gas in a business or household.

Machine-hours

A unit of measure that indicates the amount of time a machine has been actively operating in the production process.

Least-squares Regression

A statistical method used to model the relationship between a dependent variable and one or more independent variables by minimizing the sum of the squares of the differences between observed and predicted values.

Monthly Fixed

Costs that do not change with the level of production or sales in a month, such as rent, salaries, and insurance.