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:

Total Product

The total amount of output that a firm produces, usually measured over a certain time period, using all available inputs.

Total Costs

The sum of all expenses a company incurs to produce its goods or services, including fixed and variable costs.

Average Variable Costs

The total variable costs of production divided by the quantity of output produced.