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:

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases.

Caloric Intake

The total number of calories consumed through foods and beverages over a certain period.

Exercise

Exercise is physical activity that is planned, structured, and repetitive for the purpose of conditioning any part of the body, improving health, and maintaining fitness.

Concurrent Validity

Evidence that test scores are related to an external source that can be measured at around the same time the test is being given (“here and now” validity). This is a type of criterion-related validity.