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:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded, typically downward sloping, reflecting an inverse relationship.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity of that good consumers are willing to purchase at various prices.

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit.

Antimacassars

Small pieces of cloth or paper placed over the backs or arms of chairs or sofas to protect them from grease or dirt.