If Capital (K)is Free to Move Internationally,then K Will Flow

question 24

Multiple Choice

If capital (K) is free to move internationally,then K will flow from the nation with ___________,to the nation with ______________ until the returns have equalized between countries.

• A)higher K returns; lower K returns
• B)lower K returns; higher K returns
• C)higher labor returns; lower labor returns
• D)lower labor returns; lower capital returns

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Definitions:

Common Law

A legal system based on court precedents and judicial decisions rather than statutory laws, providing a framework for adjudicating cases.

Court-Made

Refers to legal doctrines, laws, or interpretations that have been established by judicial rulings rather than by legislative statutes.

Holding

A court's determination of a matter of law pivotal to its decision, serving as an authoritative ruling.

Court's Decision

The formal judgment or ruling issued by a court following the conclusion of a legal case.