Which of the Following BEST Describes the Short-Run Effects of FDI

question 117

Multiple Choice

Which of the following BEST describes the short-run effects of FDI inflows to Singapore during the latter part of the twentieth century?

• A) The effects contradicted the specific-factors model because wages fell, while the rental on capital rose.
• B) The effects confirmed the specific-factors model because wages rose, while the rental on capital fell.
• C) FDI did not have any measurable effects on either wages or the rental on capital in Singapore.
• D) FDI confounded economists because both the rental on capital rose and wages rose in Singapore.

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Definitions:

Competent

Having the necessary ability, knowledge, or skill to do something successfully or efficiently.

Outgroup Homogeneity Effect

The perception that members of an outgroup are more similar to each other than they actually are, often leading to stereotyping.

Similar

Having a resemblance or likeness, often referring to characteristics or qualities that are common between entities.

Ultimate Attribution Error

A bias in which negative behaviors by out-group members are attributed to their character, while similar actions by in-group members are attributed to situational factors.