If Companies from Foreign Countries Build and Operate Factories in China,then

question 103

Multiple Choice

If companies from foreign countries build and operate factories in China,then China's productivity

• A)and the wages of Chinese workers increase.
• B)increases but the wages of Chinese workers decrease.
• C)decreases but the wages of Chinese workers increase.
• D)and the wages of Chinese workers decrease.

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Definitions:

Incentive Function

The inducement that an increase in the price of a commodity gives to sellers to make more of it available (and conversely for a decrease in price), and the inducement that an increase in price offers to buyers to purchase smaller quantities (and conversely for a decrease in price).

Loan Period

The duration of time from the initiation of a loan to its final due date, within which the borrower is expected to repay the borrowed amount along with interest.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Economic Resource

Assets, materials, or inputs used to produce goods and services and satisfy human wants, including land, labor, capital, and entrepreneurship.