In the Short-Run (Specific Factors) Model, FDI Will Cause _______________

question 76

Multiple Choice

In the short-run (specific factors) model, FDI will cause _______________ in the return to capital and land and _______________ in the return to labor in the recipient country.

• A) an increase; a decrease
• B) a decrease; an increase
• C) no change; an increase
• D) a decrease; no change

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Definitions:

Time Series

A series of data points gathered or documented at consecutive time periods.

Nominal

Nominal refers to data that is categorized without a natural order or rank, simply identifying different types based on names or labels.

Ethnicity

Ethnicity refers to the social group a person belongs to, and identifies with, often based on cultural, religious, or national characteristics.

Interval Data

A type of data where the order of the data points is significant and the distance between them is equal and meaningful; however, it does not have a true zero point.