According to the Short-Run (Specific-Factors) Model, How Will FDI Affect

question 148

Multiple Choice

According to the short-run (specific-factors) model, how will FDI affect the return to capital and the return to land in the recipient nation?

• A) The returns to land and capital will both decrease.
• B) The return to land will decrease; the return to capital will increase.
• C) The return to land will increase; the return to capital will decrease.
• D) The returns to land and capital will both increase.

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Definitions:

Null Hypothesis

A statement in hypothesis testing that assumes no significant difference or effect, serving as the default assumption to be tested against an alternate hypothesis.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Cross-Sectional Study

A type of observational study that analyzes data from a population at a specific point in time.

Ethical Issues

Controversial questions or dilemmas that arise in the context of professional conduct, often related to morality, ethics, legality, and human rights.