(Figure: a Firm's Production with and Without Offshoring II) If

question 71

Multiple Choice

(Figure: A Firm's Production With and Without Offshoring II) If the price of R&D decreases, then it is likely that the home country:

• A) could see a decline in the amount of output produced.
• B) will see a loss in comparative advantage in R&D.
• C) could see a decline in the amount of output produced and a loss in comparative advantage in R&D.
• D) could see an increase in the amount of output produced.

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Definitions:

Share-Based Compensation

A form of remuneration where employees or executives receive awards in the form of shares or rights to shares as part of their compensation.

Unrealized Losses

Losses on investment or asset values that have decreased in market value but haven’t actually been sold by the company.

Dividends Declared

The amount of earnings a company has decided to pay out to its shareholders as dividends.

Diluted Earnings

A company's earnings calculated with the assumption that all convertible securities have been converted into common stock.