Evidence Suggests That Foreign Direct Investment Is Playing

question 47

Multiple Choice

Evidence suggests that foreign direct investment is playing:

• A)a decreasing role in the world economy.
• B)an increasing role in the world economy for services but a decreasing role in the world economy for manufactured goods.
• C)an increasing role in the world economy for manufactured goods but a decreasing role in the world economy for services.
• D)an increasing role in the world economy.

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Definitions:

Production Function

Describes the relationship between input factors - like labor and capital - and the output of goods or services they produce.

Isoquant

A curve that represents all combinations of inputs that result in the production of a given level of output.

Output

The quantity of goods or services produced by a firm, industry, or economy in a specified period.

Production Function

An equation that quantifies the output that can be generated from different combinations of factor inputs, reflecting the efficiency and technology of the production process.